It sounds like it was in their transfer. What resolution did they use in the blu ray video? The dvd will have 720 x 480 or 720 x 576 (PAL), but blu ray can accept 720p or 1080p.
If they have pushed it all the way to 1920 x 1080, then it may be a little over the what should probably be done with Super 8 source and frame by frame technique, and may need to be done with a motion picture film scanner. DFT Spirit, for example. But that is pure speculation on my part, as I do not do this sort of thing.
Assuming 1080p, perhaps you can ask for a 720p copy on a blu ray disk on the next project?
Did they burn the video to the disks or do they have access to a facility to make pressed disks? If they were burned, what type of media, burners and burning speed was used?
Your LG drive is fine by the way. The LG blu ray burners have a very good reputation on these forums.
This topic is probably better suited for the Video Editing forum, so I'm going to move it for you.