Strobed progressive rendered video

[producer]

Hello everybody!
My mini DV Cam is PAL interlaced. Ok, no problems with capture, editing, etc. But after rendering out in any video format /.avi,.mpg,.wmv/ as progressive video file, the rendered video looks so much worse than original interlaced footage - strobed, strobed, strobed even in little slow camera moving. The result is exactly the same even if I render source interlaced footage out in dv avi pal PROGRESSIVE! Anytime I render out in interlaced format, the rendered video looks ok. So, is there a method or setting which can make an excellent result from interlaced footage to progressive??? The bad result is both on the monitor and TV.

My settings are:
Template: PAL DV (720x576; 25,000 fps).
Field Order: Lower field first. If I set None/progressive scan/ - bad results!
Motion Blut Type: Gaussian Frame Rate: 25,000 (PAL).
Deinterlaced Method: Interpolate fields. If I set Blend fields or None - bad results!
Smart resample is ON. Reduce interlace flicker - better if is OFF.

Would somebody describes step-by-step all the thing I have to do in Vegas, so that to get a nice PROGRESSIVE video at last? I tried many tutorials and examples, but everytime one and the same. Thanks in advance!!!

 

[Spot]

Producer,
As you'd asked this in a different forum, I'll use the same answer....
VCD is progressive only, which is what you'd indicated you were using. VCD and television don't get along well, unless you've got a progressive display and a progressive player. The image is at the mercy of the device that is interlacing the image, whether it's the player or the display.
You can't print the progressive back to your camera, but you already knew this. For DVD, VCD, SVCD...you either need to deal with the device that converts the progressive to interlace, render as interlace, or playback only on a computer. (unless you've got a progressive player and display)