DTT to SVCD... jerky motion! Interlacing issue?

[RowaN]

I've captured a tv show using my Nova-t PCI card. I demux with PVAStrumento, then encode to SVCD standard with TMPGEnc.. all seems fine except in scenes of swift motion, a jagged kind of effect is seen.. as though the fields are out of sync with each other. (a bit like this http://freeweb.siol.net/cehovin4/images/simpsons/S06_temporal+interlace.jpg but not so extreme)
The settings template I'm using for TMPGenc can be downloaded here:

www.nspca.com/ondigital2.mcf

Basically, to encode the svcd, I'm setting the source as interlaced and the svcd output to be non-interlaced.. thats right isnt it?

Any ideas guys? Any help much appriciated.

[ppera2]

Output must be interlaced too.

[RowaN]

I tried this - I still get the same sort of problem when I set both the input and output to interlaced. The original mpeg I captured does not have this problem.