Watched the DVD extra of the Toronto panel discussion in 2004, and Liza herself declares that the film was blown up from 16mm to 35mm ("35L" is what she specifies - does anyone know what the distinction is?).
The Mein Herr footage seems like it was shot while lit mostly with red light, then subsequently left to deteriorate/discolor as the years went by. The "shimmering" may be a combination of the red sparkles/reflections and uneven dye quality (since the film reel most likely faded in some places more than others).
Nowhere on the DVD is there is a discussion of the original negative - which, if available, is always stated upfront since it means that the picture quality will be of a high level.
I still enjoy the show because her energy has certainly not been comprised by the loss of picture quality.
But - who knows - someday maybe the original negative will be found and we can then enjoy "Liza With A 'Z'" in all its pristine glory? (As Sally Bowles in "Cabaret": "Stranger things have happened.")
"Don't call me 'honey', mac."
"Don't call me 'mac'... HONEY!"
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