You’re absolutely right. The bigger sensor camera thing is not possible for this project unfortunately, but all the other things we’ve taken care of. We shot using a little zoom whenever possible to force a shallower depth of field on the subjects, and we’ve treated the image with levels, saturation, contrast and grain filters so as to achieve a more “cinematic” look. Still, without the deinterlacing, it looked more like a color-corrected soap opera than a film. I’m not saying we’re fooling anyone as it is, but at least it looks more like what the director wanted.
About the deinterlacing filter being responsible for the lines, here’s a new discovery we’ve made: The other video that is included in the DVD, a music video from the same band, also shows the same lines during fade-ins and other hi-contrast moments. This video does not have (to my knowledge) any deinterlacing filter or weird process. It has been broadcasted on tv and seen in many places with no lines at all, so there must be something wrong with the DVD encoding! what do you think it could be?
Here’s a screengrab of the music video showing the lines during a fade-in:

As I said, the ‘lines’ are not the typical combing deinterlacing artifact, but to me they look like they’re interlace-related. What do you think?
thanks,
simon.