I find HDV m2t files a pain to work with. I use the stand alone Cineform Connect HD software which as you digitize will convert the incoming files in real-time to Cineform Intermediate AVIs. You have a choice of intermediate file specs to choose from. Basically good, better and best with different file sizes. The quality is outstanding with the Cineform codec. If your PC isn’t fast enough to convert in real-time you can also convert already digized m2t files with it. Vegas does actually come with the Cineform codec which under ‘render as’ can be selected to convert your existing m2t files to the Cineform codec. Way better than m2t files to edit with at any time, hence Sony including it with Vegas!
Once you have the Cineform files you can open them in Virtual Dub and under ‘filters’ hit the add button choose ‘deinterlace’. Under the deinterlace menu you have seven options to choose from, the top one ‘blend fields’ useually proves to be the best. Do a Google on VirtualDub it’s a free download, under the GNU licence I seem to recall. BTW VirtualDub won’t handle m2t files should you want to ask. Good luck.
Chris Young
CYV Productions
Sydney