TV is NTSC. My understanding is you're allowed to horizontally resize interlaced content as long as you keep all the vertical lines. (720x480 -> 640x480, simple AR correction). When you use TV-Out with a hardware overlay, the TV can process an interlaced signal (like it normally does from a broadcast antennta, your VCR, your DVD player, etc.) and deinterlace it on the fly. I could use ffdshow to perform some rough deinterlacing, but if I wanted rough deinterlacing, I could attempt a hybrid deinterlace with decomb. A truly interlaced source should display correctly, deinterlaced, on a TV. I'm moving today, so I can't spend a lot of time searching the forums here for the background to some of these claims, but when I have a minute, I'll give you links to posts to back these statements up. (Or you can search for yourselves, of course. :))