Your video needs to be deinterlaced for WEB viewing on a PC monitor.
The Bad News is that you cannot (as far as I know) deinterlace from within ULead Videostudio 8
What I do is use Videostudio 8 to encode to full screen DV AVI and then use Windows Media Encoder to deinterlace and encode to WMV format for posting on the WEB.
Windows Media Encoder is Free and availbale from Windows Media Encoder.
Post back if you need some tips on Windows Media Encoder
COMPAQ something or other with 500Gb Boot Disk, 1Tb external Firewire Disk, 4Gb Memory and a super duper sound card, 19" TFT Monitor etc etc etc
Sony TRV33e : Sony TRV310e : Canon XM2
Sony Vegas Studio editions to v11
Remember, there is always more to learn than there is to teach.