I tend to record mpeg2 using a Compro or Dvico hardware encoder set to 6 or 7 mbps. I then author with Tmpge Author and shrink to fit with DVD Shrink or Intervideo DVD Copy. I wanted to improve on the output, so I have lately used Tmpgenc to re-encoding the mpeg2 stream on 2 pass vbr, then I author with Tmpge Author. The result is smoother, but I now have an interlaced output from a deinterlaced original. I get this even when I select non-interlaced in the Tmpgenc options.

1) How do I rid myself of the lines?

2) Is there a better encoder that avoids this?