So this is still an issue for me (reference image above). I actually tried the software on my laptop and got the same interlacing issues as on my Power PC G5.
At first I thought it was VHS Deck causing the interference, so I tried another deck. Same issues.
Then I tried a ADS Tech Pyro A/V Link instead of the roxio device and the problem went away, except now i have drop frames.
long story short, it has to be the actual Roxio VHS capture device causing this interference. right?? maybe in the world of technology, I just bought a lemon?
Either way, Im still using the Roxio device because its not that hard to remove the interlacing (long process, but easy).
All im doing is converting the MPG files Roxio creates into MOV files using Toast 10. Now it does lowers the quality, but come on... its vhs tapes. The Part I hate is the fact that I send the MOV files to Final Cut Pro to edit, then I have to Export the MOV files again.
So long story short my original mpg files Roxio program creates has to be encoded twice just to remove the interlacing and also to export after im done editing.
if any one has something a little more easier let me know.