You would of course instead keep the original scan, save it only as PSD after importation, make any adjustments using Layers etc.

Since you mention you have experience with Photoshop, allow me to make another analogy: imagine you make a high-resolution scan from an old photograph and load it into Photoshop Elements, apply “Auto Smart Fix” (I think it’s called), save it as a JPEG and then delete the original scan that’s the closest I can think of recording directly via the Sonnox plugins bundled with WaveLab, even if it were possible to do so with WaveLab Elements 8. I am not aware of any automated process that can deliver optimal results every time, for the simple reason that the input material is a non-deterministic variable. The Cedars you mention are top-end hardware solutions, but I would argue that with even WaveLab 8 Elements and the proper plugins and skills (and enough time and patience!) it is possible by means of judicious manual restoration to surpass them in terms of the end result. Recording the source material through any processing stage, hardware or software, means it’s irrevocably changed even before it’s captured. The reason for this is that the source media is often fragile and in some cases there may be only one opportunity to capture the material (baked tape, for example). I would concur with Arjan P, and that is also my approach – make an archival transcript (recording) first, and do the processing after the fact. Dave, it’s not so much that we’re missing the point, it’s that I don’t think any of us would approach restoration in this manner.

Wavelab elements 8 file is damaged