Here is a link to the You Tube video. I also attached a frame to this post showing the problem.
I had an on board ATI Radeon HD 3200. Tonight I replaced it with an ATI Radeon HD 6850. I also did a complete Roxio reinstallation after disabling all virus protection and every other program that was running. I uploaded a project to You Tube and voila, same problem.
If I take the raw footage and make a DVD using WinDVD, the result is fine. And as I mentioned, it looks fine in Video Lab while I'm working on it.
I'm running Windows 7 with 8GB RAM. I've tried hardware rendering, vs software, interlaced vs progressive, every different combination of options and they all look the same. (see the attached picture)
Free Kansas City barbeque to whoever can help me with this.