upcoming Lain BD from Funimation is going to be a native master or an upscale. I asked the product manager in Houston, and he gave us some good news this morning:
"We've been getting a lot of questions about the Lain Blu-ray, it's not an up-res, it is native HD. They actually went back and remastered the whole series, we even have a 24 page restoration booklet (along with a 320 page artbook) included with our release."
So the upcoming Lain set will indeed be Native HD. Sweetness! Bet you're glad you didn't pay $400 for the Japanese BD box... :-)
The set is due to street on November 13th.