Got back in touch with the friend who saw the interlacing. I asked for screencaps but he said:
f*: wow... when I go frame by frame... it only shows about 2 or 3 frames interlaced
f: And to make things worse, it appears intentionally done as part of the source material
f: this is true for every single place I saw interlacing.
f: It looks to have been an encoder artifact from the original encode of the video stream, and not one you added or could possibly find a way to remove in editing
These are the frames he's talking about, in sequence:http://i240.photobucket.com/albums/ff28 ... f/ff71.jpghttp://i240.photobucket.com/albums/ff28 ... f/ff72.jpghttp://i240.photobucket.com/albums/ff28 ... f/ff73.jpg
Which is easily fixable, I think. When I pressed him for caps of the section he said contained massive interlacing (later in the vid), he said that section looked clean now.
So... yeah. Paranoid.
*Shortened his IM tag down to the first letter to protect his identity. Plus it's an appropriately expressive sound of how I feel at the moment.