It probably doesn't help that my source is this:

^(bootleg DVD that suffers from frame-blending throughout)
Here's all the helpful info I get from DGIndex on it:

Here's my ridiculously basic script for it:
MPEG2Source("C:\Users\Preferred User\Desktop\DGIndexProjectFiles\Hitohirax1-3.d2v", CPU=4)
AMVIVTC(mode=1)
Spline36Resize(848,480)
ConvertToRGB32()
And if you want to see a short clip of it -- I either upload this now and try to get help or I get brutally griefed for "not deinterlacing" when I try to share the finished video later -- here's a minute or so. It's not terrible quality, but overall I'm not satisfied with it and thought I'd try to get an opinion or two before putting this project in the can:
http://www.mediafire.com/?5s0o55g010syb4f
I've even tried using downloaded footage (pristine-looking AVI files I was able to grab from a torrent) in place of some problematic clips but I still have the same problems: interlacing and interlaced-looking effects in the final product. Like I said, I tried to follow the guides and I've made AMVs before that didn't have this problem, so while I think I'd probably benefit from a basic "cleaning up footage class," I don't think I'm totally missing the concept or anything like a total noob might.
Anyway, any help with this would be really appreciated. Give me 5 minutes of yr time and I'll give you an OP or something.