Well thanks for that. I didn’t try the opacity adjustment. I did use the flicker reduction effect, but it basically just softened the whole video (which by the way was not a bad result, it just didn’t solve the gristly text). Effectively the video looked nicer! I did try de-interlacing the text in FCP (duh, it just re-interlaced when I exported to QuickTime DV file) … But eventually I just solved the problem the hard way – Exported the video from FCP without the text and re-did each inter-title in AE.
Crawling chroma! sounds like a band.