I am converting a bunch of HI8 tapes to svcd with a dv cam output to my firewire card. I'm using TMPGEnc, and after encoding using 10 or so different codecs with various programs, i've determined that 2 pass vbr svcd NTSC noninterlaced results in the best picture. To further increase picture quality, i used a noise filter. This did significantly increase the picture quality, however, it also produced a yellow blocky area near the bottom of the picture. This blocky area would come and go.

Settings:
Still picture: 20
Range: 1
Time Axis: 20
High quality mode: Checked

Does anyone know of a solution to the yellow blocky area at the bottom?

Thank you for your advice.