This looks like an adaption of basic edge enhancement. It would sharpen transitions but also it will induce ringing as well. The acceptable balance between the two evils is up to the user.
There are better products today, the DVDO Edge, and the Lumagen series. For what you are doing I would look towards Ebay. You can get used a DVDO VP30, VP50 or a Lumagen HQV at bargin prices. the Lumagen HQV is said to have one of the best up-converters of the day.
There is also the Black Magic Teranex 2D which is what I use today. But it's not really that HT friendly being more tailored for broadcast use. But its has amazing image quality.
I am noticing a trend in the latest processors to focus on HD only enhancements. Some now are HDMI only. IMO, the better up-converters may in fact be in the older models. I guess they figure not to many people are looking at legacy formats anymore or have long since converted them to DVD.
Edited by Glimmie - 5/15/13 at 11:10am