Video file playback software is a middleman?
 

About 5 or so years ago, I Capped some VHS tape footage in .AVI format using an XP based PC with ATI AIW Video card, The Playback looked horribly "Combed" with horizontal lines across the screen.

I thought that something was horribly wrong with my Video capture process, Until I saw something posted by sanlyn about setting my VLC player software to INTERLACE/De-Interlace setting!

So then I went back into VLC AND CHANGED VIDEO Settings around and Whala!..
Captured Video Looked smooth as silk!..
In OTHER WORDS, THERE WAS NOTHING WRONG WITH THE CAPTURE, IT WAS THE .AVI FILE PLAYBACK APP SETTINGS THAT NEEDED TO BE ADJUSTED!

Yeah, interlace can be tricky to understand.

You capture was right -- and you TV also understand interlace (HDTV or SDTV).
It's just computer playback that gets confused. It's a progressive device playing interlaced content.

VLC is a good live-deinterlacing player. Never deinterlace just to watch. Change the player software, not the video!