[Ann Bens]

That is correct: its all about handles.
You probably need to trim the revealing clip a bit more.
Or move the transition to right (start at cut)
https://help.adobe.com/en_US/premierepro/cs/using/WSE2A9B838-1422-4d8a-9A03-CFDF4332533B.html

[Ann Bens]

The FX1000 can shoot progressive but puts it as interlaced on tape.

[Ann Bens]

This tutorial shows you how to batch resize:
https://www.videocopilot.net/tutorials/elegant_slideshows/

[Ann Bens]

This might help:
https://kb2.adobe.com/cps/828/cpsid_82848.html

[Ann Bens]

In the Presets bin there is Fast Blur In and Fast Blur Out.
Do they work for you?

[Ann Bens]

Does your sequence match your footage?
https://www.video2brain.com/en/videos-4003.htm

[Ann Bens]

I agree but will it keep the quality……..

[Ann Bens]

OK, Running out of ideas. Last one:
Set firewire driver to legacy.

[Ann Bens]

You do not have preview in the capture window when capturing hdv.
The capture window should be blue with text saying: playing on videohardware when capturing.

[Ann Bens]

Are your capture settings set to HDV in the capture window?