ggrussell, the image above is the way it looks in both this PC monitor and two different widescreen displays (and that of a friend), I did burn the project many times to dvd already and watched the DVD in both my displays (Toshiba and Panasonic), DVD players (Blu-ray and HD-DVD) are connected to both these displays via HDMI cable..
The "jaggies" only happens during the portions re-encoded by VW or MyDVD portions with 'transitions' and "text effect"... the rest of the interlace video (480i) of the same clip plays as good as the original, until the next 'transition' kicks in (and text effect) at which point the image shakes a bit followed by 'jaggies" that manifest themselves in just about every straight border/edge in the video, it goes away after the 6 sec text effect duration..
I'm going to do a short "progressive" test in Mydvd using the same footage, but if forced to burn in progressive mode then my project will have to be cut down to 1/3 of the current length due to DVD capacity limitations, ruining what I'm trying to accomplish......
IMO if the interlaced portions of the footage plays fine in all my displays (and a neighbor's) I don't think it is an interlace "flag" issue with the players/Screens otherwise the jaggies would be showing up all the way through the clips/footage, not just the re-encoded/rendered portions along,
IMO something is happening during the VW/MyDVd encoding in my setup, or some kind of bug with the program...
And yes, this is a 'minor' issue that most people dismiss, I even played the video (DVD) to a friend in his setup and he didn't noticed, unfortunately I have a sharp eye..
here is another snapshot taken from the latest 'short' experiment..with text effect in a different location..
and I uploaded this clip to be able to watch the actual playback, but the host site converted the Jpeg to Flash and reduced the display size, you can still see the jaggies as text appears but just barely in this video clip...
you can see it by blowing up the image in your screen (or downloading full file), keep an eye of the microphone or her arm as the text effect appears and then fades away..