i always cap it AVI, the lines you see on your monitor should disapear when you Convert to DVD and Progresive Scan the final DVD (a option to click in studio)
This is what i have found, But in some cases Studio 9 /10 just has a mind of its own and i find myself doing another capture, which sorts out the problem.
Live from Norwich !
Sony PC1000E ( Stopped working after 13months)
Sony HDR-HC3 4Mega Pixels High Def Mini DV Broke
Canon HF 10 - Broke
Waiting for the Sony HDR-GW55VE
Avid Studio, + Pinnacle Studio14, Win7 64bit 12 GIG memory, Nvidia GTX590, twin 3D display, 2Terrabyte HD