Interlacing issues when burning DVD from captured MPEG2

[Sedonafilmer]

I'm using a USB-Live2 Hauppauge converter. I'm capturing from a S-Video composite source. The capture works and looks fine. I have the configuration set to create a ".MPG" file to use in DVD Architect.

Using VLC and WMP the mpeg file plays correctly. When I burn the DVD in Architect (I also tried Nero Vision with the same results) then play the DVD on a television, the image is stuttering/jerking around motion (appears to be interlacing problems). I repeated these results on an Windows XP and 7 system.

I play the same DVD in a computer and play it back with VLC, it looks fine. Play it with WMP (mixed results for different versions). I'm assuming some programs are actively de-interlacing the footage and bypassing the issue. To test my theory I re-rendered the MPEG-2 progressive in Sony Vegas Pro , burned in architect. Voila! problem is gone (98% I can still see a little stutter).

My issue is that I don't want to have to re-render every mpeg2 I create. Is their a way to alter the USB-Live2 or WinTV software to capture progressive so I can go straight to burning without issues? Has anyone else had a problem like this? Is their a different codec I can use to capture?

in advance.