the dvd is the same as the vhs version...
as for whether it was cut live - I don't believe so.. I think they just cut it from the video. I love pippin, but that recording is one of the "how not to" film a musical.
I think, thus far, the best direction/capturing of a live musical on film is Sweeney Todd....
"A little nonsense now and then is relished by the wisest men" - Willy Wonka