Deinterlacing & resizing: which way to go in Virtual Dub

[Pompebled]

This question is about finding the best way to deinterlace my footage before encoding with TMPGenc to PAL-SVCD (480*576).

I capture my Hi8 tapes with Marvel G400-TV using Matrox MJPEG.
I capture in highest PAL-resolution (704*576), highest quality.
My PC only has a PII-350, so software compression is out of the question.
Converting rightaway to mpeg2 gives "jerky" picture, especially in parts with (a lot of) movement.

Who has the best general deinterlacing & resizing solution using Virtual Dub?
Which codec to use when saving the deinterlaced AVI?

[suikerklontje]

use in virual dub on the video tab filter first deinterlace with the optin blend an next resize in the reselution you want. I use the PicVideo mjepeg codec with very good results. Then I frameserve in VirtualDub to Cinema Craft Encoder with encode it to mpeg.