First, I would try adjusting your deinterlacing settings. That is most likely the cause of the motion problems you are noting, especially if the source is 29.97 and you are encoding to 29.97 (ie. no change). Second, about Squeeze… it is a good and intuitive app for beginners, and that’s about all I can say for it. For more power and better control, ProCoder (even ProCoder Express) on the PC and Compression Master on the mac are better choices, although each are probably more daunting to tweak than Squeeze.