iMovie HD export settings for Mac playback -- trouble with scan lines!

[CMD is me]

I have a AVCHD camcorder and record at 1080. After editing in iMovie what setting should I use if I want to play the video back on a Mac hooked up to a HD projector? I was thinking H.264 with the compressor set to high (not highest) to keep the files around 17Mbps then also create one using the AppleTV export incase I ever went that route. HD takes forever to encode so I want to get some advice from someone who's tried it.

Also, should I use the same settings for SD video? Thanks.

[CMD is me]

I've been trying different settings using a 15 second clip. It was shot with a HC9 HDV at 1080i and imported as 1080. It looks great in iMovie and great when exported using the AppleTV 540p default, BUT I cannot find a Quicktime export that doesn't result in jagged scan lines! I used H.264 at 720/1080, deinterlacing on/off, compressor set to med/high, and they all look bad. Even the original Quicktime clip dragged out of iMovie looks the same. What's the deal?

[huntercr]

I've been trying different settings using a 15 second clip. It was shot with a HC9 HDV at 1080i and imported as 1080. It looks great in iMovie and great when exported using the AppleTV 540p default, BUT I cannot find a Quicktime export that doesn't result in jagged scan lines! I used H.264 at 720/1080, deinterlacing on/off, compressor set to med/high, and they all look bad. Even the original Quicktime clip dragged out of iMovie looks the same. What's the deal?

Can you post a screenshot?