I have captured a small (~800 meg) AVI file using VirtualDub and when I play it back on my computer, it looks fine. The source is a VHS tape going through a ATI AIW Radeon 8500DV. The resolution is 352x480.

I cropped the bottom 16 lines to get rid of shifted scan lines and resized to 352x480 using virtualDub.

I have converted it to SVCD using the latest DVD2SVCD (the AVI2SVCD option) using the latest version 1.0.8 build 1. When I play the resultant mpg file back on my computer I get a strange video "banding" kind of effect. It looks like the video screen is made up of about 20 horizontal bands shifted about 5 pixels relative to each other, one right, then one left, then one right, etc. The audio is fine.

No matter what I try, it looks the same. I have used the tmpencg encoder, the CCE 2.5 encoder, avi_io for the capture, different versions of DVD2SVCD, etc. I have tried recapturing the video with no difference in results.
Thanks

Steven