What's causing this?
The part I'm specifically interested in is the granulation of the ceiling, blackboard, etc where it says School Rumble. I've tried tweaking the color settings, cutting down (and off) the lossy. None of it seems to make any difference. I'm assuming it's partially caused because this was originally a 640x480 frame, but is there something I can do to correct it or am I just going to have to live with it?