[ Video ] 1930s Midwest Steam Trains and Streamliner in Action - Classic Trains Magazine

There is sofware and procedures to restore old films, or at any rate boost the quality of the same.  Whether or not it's proprietory I'm not sure.

There's a gent named John Pechulis who's made a business out of it, especially as far as railfan videos are concerned.  I've gotten several of his DVD's made from 8mm films shot by railfans, and his results are amazing.  When he's done with them you'd swear they were shot on the best quality 16mm film.

Here's his website, 

Go through it and there are some great examples of his work.