For those interested in how Beosystem 3 processes images;
While browsing through the Beosystem 3 service manual on this site I noticed that there is a module in it referred to as Pixelworks, Ive looked on the web and Pixelworks are a provider of advanded video signal processing chips.
Their site is quite informative, Im guessing that the Beosystem 3 includes a Pixelworks DNX chip, the features of which are explained in the link below.