I give this DVD release three stars, but I need to explain its positive and negative points for you to understand it (hence the asterisk).
The good points: 1. The price is unbeatable. 2. You get TWO movies for that price. 3. The movies REALLY aren't all that bad. Ignore for a moment the mediocre acting, the corniness and the poor special effects, and THE KILLER SHREWS has at its heart a terrifying siege while THE GIANT GILA MONSTER has some genuinely well-drawn characters and a surprisingly decent script.
The bad points: 1. Yes, the transfer is sub-par. A lot of pixelation, especially during bright flashes in darkness (like the lightning strikes during the hurricane in THE KILLER SHREWS). 2. Two chapter stops per film, and one of each is the beginning. 3. Few 'extras' per se, but some interesting trivia bits on difficult-to-read text screens.
Now that you know all that, take into consideration the fact that most VHS copies are recorded in EP, and this DVD (despite its below-average quality) is miles ahead of those VHS tapes... and the price is probably better, too. So, overall, I think it's worth it.