I rented the restored version of this film. The restored version contained Capra's ending. There isn't that much difference between the two endings, but Capra's is better. Capra creates saccharine films that get in the way of the story, or maybe that's just a 2006 viewpoint. I still enjoyed this film. Others on this board have referenced the darkness in the book, and have peaked my curiosity about the book. Maybe Capra just isn't inclined to show darkness in his films. No matter, it's a wonderful film.
I certainly would not classify this movie as an old movie, because there is nothing else like it. I would suggest the High Lama's main speech is a radical interpretation of the Sermon on the Mount, and you don't find many movies with similar themes. The restored version contains those portions of the speech that were edited in other versions. The liner notes reference the film as too much of a peace statement at the time of its making. It's too much of a peace statement in 2006. The commentary included in the DVD states the film was first show at a length of 3 ½ hours. I would have liked to have seen all that footage.
Unfortunately the restored version was pieced together and we see variations in the footage, variations that call attention to the difference. Too bad. Joseph Walker's and Elmer Dyer's filming is beautiful. These "black and white" guys new what they were doing. There work is timeless. Thank you all (Robert Gitt of UCLA and Sony) who patiently restore their work. For me, movies LIVE in 35 mm, black and white. This one did not disappoint, although as mentioned, some of the original negative has been lost. Fitting, really, for a movie titled, "Lost Horizon". I see Capra's last shot it's beautiful!