Motion ugliness in DivX Capture

I am using VirtualDub Capture to capture some video game footage and I am using DivX 5.0.5 compression during the capture. Everything is good except one glaring problem. I don't know what it is called, but it looks like this...



It happens when part of the picture is moving fast. It's like someone shredded 2 pictures and pasted them together in alternating strips. If anyone can let me know what this is and how I can eliminate it, it would be much appreciated.

Thanks

Let me try this picture thing again.

[almostaborted]

it's called interlacing

search for this keyword...there have been many threads in the past week alone covering this area

if you plan to keep the video to view on your computer you can use a filter in virtualdub to eliminate this issue...otherwise if you plan to use the video on a tv i would leave it