Capturing issue - jagged edges with motion

[Noek]

quick question regarding some issues I'm having with burning my home movies. I'm using a dv camcorder and capturing the video with Ulead Videostudio via Firewire. This is where I get a strange problem as it captures, I can see the video on my monitor and I notice that when a person is still, it is clear...if they begin to walk or run, the edges of the person become jagged.

The remaining process is I encode the video only to m2v using TMPGEnc. I use virtua dub to extract the sound to .wav and then use FFMPEG to convert it to .ac3. Finally I use TMPGEnc DVD Author to create the Mpeg and then burn the final product using Nero. The final output is crisp except for the motion part, I still get the jagged edges when there is alot of motion on the screen.

I should note that when I hook the camcorder up directly to the tv, it is perfect, so the problem seems to be the capturing process, but I am not sure what I am doing wrong? Any help is greatly appreciated as this is my only problem, everything else seems to work perfectly. Thanks!

[Tommyknocker]

Try encoding a sample portion using the inverse telecine setting.