I have a DVD that shows (in DVD2AVI) the following:
Frame Rate = 29.97
Video Type = Film
Frame Type = Interlaced

Correct me if I'm wrong, I thought "film" and "interlace" are mutually exclusive. If I'm wrong, does it mean that I have to first select "Forced Film" in DVD2AVI and then deinterlace it (in FitCD by using script)?

I tried to IVTC this DVD by using script in FitCD (I don't have the exact script with me right now, I got it somewhere from this forum provided by Kwag), I muxed in bbMpeg with MP2 (processed by HeadAC3he), the final output out of sync! (I did NOT select "Forced Film" in DVD2AVI because I thought the IVTC will convert from 29.97 to 23.97 which it actually did). Any idea?

That is a film FILM
If it was not, it would say:
Frame Rate = 29.97
Video Type = NTSC
Frame Type = Interlaced

The key here is Video Type=(NTSC or FILM)

Yours says Film, so turn on "Force FILM", and create your project file. Then encode with the templates set as default 23.976fps. You don't need to IVTC.

-kwag