I just can't seem to get the hang of my problem. I've tried Frame-based, Field order A and B, and no matter which of them I use, I get those annoying lines. I'm using ATI AIW 8500DV and I'm not losing any frames (so that's for the performance). And when doing slow-motion it does "two steps front, one back" kinda thing. But this time the picture is very sharp with no lines at all. I've also tried this on a TV and the problem remains. I've tried tmpgenc's non-interlace and interlace options, too. And I think I used a de-interlace button somewhere, but it only made everything a bit blurry.

I believe it's terrible to read whining like this, but I'm quite desperate already... Thanks a LOT for help.