I did re-encode (bottol field first, PAL 4:3, without filter) and author using TMPGEnc. I got acceptable result.

Acceptable means good enough to those normal eyes, because Im watching it 5 feet from my 29inch philips TV. I can still see a little bit of interlaced or maybe im just too paranoid now.

Guys sorry for all the confusion. Now I can say that transfer is not a problem at all (although I will redo my transfer). I lost 4 dvd+r disc along the way.

Its fun though, frustrating a bit.

I guess ill master the TMPGEnc and its filters. Sigh, with expense of dvd r/rw disc.

Anyway, thanks again.