Interlaced video in iMovie

GFLPraxis

macrumors 604
I've got some video I imported into iMovie after recording with a Miglia TVMicro.

Every time I try to export it, it has very visible interlaced lines all over the place. When I actually play it in iMovie, it looks fine.

What am I doing wrong? And what settings are best to export it to for results similar to the 480p option on Apple trailers (though of course source is 480i).
 
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