You need:
DeinterlaceSmooth http://biphome.spray.se/gunnart/video/AVSPorts/SmoothDeinterlacer/
decomb http://neuron2.net/decomb/decombnew.html
VirtualDub http://www.virtualdub.org/
and
DynaPel MotionPerfect http://www.dynapel.com

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1. Make a script for you 29.97fps interlaced video.
<avisynth script>
LoadPlugin("C:\Program Files\AviSynth 2.5\plugins\SmoothDeinterlacer.dll")
LoadPlugin("C:\PROGRA~1\GORDIA~1\decomb.dll")
avisource("C:\YourMovie.avi")
KillAudio()
ConvertToYUY2()
SmoothDeinterlace(tff=false, doublerate=true)
FieldDeinterlace(full=true, dthreshold=0)


2. Load your video into dynapel motion perfect, set your output to same duration, and fps to 23.976fps.
Save.

3. Append audio from original file. with VirtualDub.

tada. Full res progressive film, from interlaced video.