After viewing the footage on a TV it actually looks a little funky. The interlacing is gone, but there appears to be some odd jerkiness going on whenever there’s motion.
Using Compressor I applied the DVCPRO HD 720p/24 setting, and did 2 different exports, one with all the frame settings set to Best, and other with them set to Better. Both seem to work OK, but neither keeps the footage looking totally smooth.
Are there any other recommendations that can help with that?