Interlacing problems with Videostudio 7

[Keitho]

I've been searching and reading the threads involving Videostudio 7, and haven't found the exact answer to my problem. I have a Sony HC21 MiniDV camcorder, and use Ulead Videostudio 7.01 via firewire to get the video from the tape into the computer, with no problems. Using the automatic scene splitter, it saves a separate AVI file for each scene. Playing these files in PowerDVD looks great, clear as a bell.
Viewing the video while capturing from the camcorder shows the interlacing lines in the preview window, especially when the camera is panning left to right, etc., and in areas with lots of movement.
Final output to DVD will show these same interlacing lines on the computer with PowerDVD, and when playing the DVD on my set top DVD player and my TV, I'll see flickering in the picture, instead of interlacing.
I used Ulead DVD MovieFactory 2 to do a direct-to-DVD capture, which took a very long time, but the resulting DVD looked fine.
I'm attaching a screen capture of a scene from PowerDVD that shows a clear picture of people standing still, but the jumping girl is all interlaced horribly.
I was just wondering if anyone else has had this problem, and if there's a way to use Videostudio 7.01 from start to finish. I've tried a lot of different settings, with field order, etc., but it hasn't made any difference.

[Keitho]

Looks like my picture attachment didn't work the first time. Let me try this another way.