Note: The forum has a max display size of 850px so it doesn't stretch the page. It's shrinks all image to that size. To show anything larger, stick it in a zip, and attach the zip file. But that's not causing. The above images are 709x425, which is odd.
Interlace lines ONLY show on a computer, not a TV. To "fix" it on a computer, watch the DVD with the free VLC media player and enable to the deinterlace filters on playback. The 2x Yadif is one of the best methods in use right now.
If you deinterlace video, you throw away information. For DVD, that's bad!
For streaming, however, it's required. You must do this for video on Youtube, Hulu, etc.
But here the things -- even studios screw that up. I have MANY botched videos converted "professionally". The last one I saw was the Hulu release of the 2003 L.A. Dragnet with Ed ONeil from Married With Children and Modern Family. I have a home recording that's superior! How is that?
Deinterlacing create ugly jaggy lines on screen. In August, I bought the DVD box set of That 70s Show (it was only $30 from Amazon.com
).They really screwed up several seasons -- S6 especially -- by deinterlacing! And S7 has horrible audio compression issues. If studios can easily screw it up, think about how easy it must be to do! How many home consumers have totally mucked up their videos?
Again, leave interlacing alone. For DVD, it should be there. You get 100% of the video image this way.