Yes as Marc says dont deinterlace for dvd production, sorry for any confusion caused. Where di interlacing is helpfull ( in my expirience) is befor compression to wmv and also in clips where there is slo mo or you use track motion effects as this screws the way the fields lace. Fast motion interlaced always look odd on a monitor but fine on a telly.
I have to say it is not an exact science, I usually fiddle and go with what works best but as said for basic video with no slo mo or zooms for a dvd leave well alone.
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