More feedback to add to Andrew's reply.
Using Deinterlace creates a dvd.mpg file only marginally larger than without deinterlacing.
But the result is visually better than without deinterlacing, which is awful jagged at camera movements zoom/pan, at least on my 2560x1440 res monitor using VLC.
I do not understand the above sentence. Which result is better? with deinterlacing or without deinterlacing? So Progressive is better? which makes more sense to me in this day and age. As far as I read on the internet, DVDs can be either Progressive or Interlaced.