I have played around with your file and your settings you have used under the x264 tab and I could encode your file without problems to a 60fps file.

Could you upload all pictures from the base,filtering,audio,config setting tabs?

Thanks. That was the issue. Two things:
1) could you attach the deinterlaced sample of the original file. I'd like to compare what you have with mine.
2) isn't using a slower setting in the deinterlace tab better in terms of quality?

Slower denotes speed, not necessarily quality. Slower adds some NR, which often results in softening the image.

Slower is just a template, and you can manually set the switches instead of using the templates.
http://avisynth.nl/index.php/QTGMC

Sometimes I set manually, when quality matters (rare footage, HD upsizing for documentaries, etc). But most often, I just set it at Faster, and quality is perfectly fine.

Thanks. Is Hybrid good for denoising and degraining? If yes, what settings for each? If no, what do you suggest?

Hybrid has CCD, which is really nice.

NR depends on the exact issue being faced. There's no general-use NR, aside from chroma NR (CCD). Grain isn't always a bad thing, and "noise" is a generic non-specific description.

Basically the noise you see in the sample file. It's too much. Also, I couldn't find anything called CCD under Vapoursynth>Denoise.

Thanks. The issue was with the latest version of hybrid.

Would you do me a favor? I'm busy.
I reported this to selur (dev). https://forum.selur.net/showthread.php?tid=1471
If he has questions, could you answer those for him? He's usually pretty good about fixing issues and bugs.

And I know I saw CCD. But not I don't see it. Asked that there as well.

Ok. He already provided a dev build that solved the issue.

It seems you can't deinterlace with vapoursynth and denoise with avisynth at the same time because selecting vapoursynth at the bottom right grays out the avisynth tab. So, should I denoise first and then feed the output file to deinterlace or vice versa?

Moving from NTSC to PAL files
 

lordsmurf,
I am now encoding some PAL AVIs (10s sample attached) and I'm noticing some ghosting effect (especially visible around body outline) as compared to NTSC AVIs in the output file when encoding with Hybrid. Do I need to change anything in Hybrid moving from NTSC to PAL?