I have read all the posts that I can and checked out all the links relating to this subject. However... I still have a problem.

I have a JVC miniDV camera that can record normal (interlaced) and progressive footage. I understand that VCD is progressive output and SVCD/DVD can be either.

When converting to MPEG (TMPGenc 2.52 PLUS, and earlier versions) and viewing on my DVD player, Interlaced encoded using normal footage looks clear and with high movement, the moving objects and background are clear, no blurring of one against the other.
Progressive footage looks good, but the background or stationary objects in relation to the moving subject (dogs doing agility) looks blurry when the camera is panned past them. Encoding as progressive output makes no difference. Video source setting (interlaced or progressive) makes no difference either. Field order has no effect, as I would expect.

One thing I have noticed is that the interlaced footage encoded as interlaced output has some blockiness in high motion scenes (dog etc), at SVCD(PAL) 480x576, no filters, block noise at 35, 2 pass VBR 3500/2500/750. Progressive footage and interlaced or progressive output (appear to be the same quality) has no blocks, but the effect as described before.

So.... I like the interlaced output from interlaced footage, but will have to play with the settings to get as good as possible quality with motion, but I like the effect the progressive footage has on the blocks, as I can lower the bitrates and fit more on a CD, but has the motion blur, though still watchable as I think people may miss it as they would be watching the dog etc running around, which is'nt blurred.

I don't know why progressive in and ecoded as progressive out has this problem, am I missing something or am I trying to do something that is not possible??

Any ideas, suggestions or thoughts appreciated.