I captured to DV-AVI and it is heavily interlaced when viewing on PC (as expected). When previewing through software such as WMM and Nero ShotTime, however, the playback appears progressive (so I asssume deinterlacing is done in realtime), but the framerate appears just as I would expect. After encoding and deinterlacing however, playback is just not up to standard - it is choppy and seems more like a slideshow. On pause, the image looks as though two frames were mixed together.

Is there any way to emulate the far superior playback of DV-AVI through WMM and Nero after encoding. Resultant file size not too important. I would like the video to be progressive, though.

I have already tried encoding through VirtualDub and WMM.
Many thanks,