If you are using 1.5.1 you will capture and it will automatically convert to Cineform AVI for you. If you do this in version 2.0 you will be editing native MPEG.
I would just deinterlace each clip on the timeline. But there are some slight advantages to using After Effects or even better, use Fieldskit -
http://www.revisionfx.com/rsfk.htm
Deinterlacing isn't that big a deal since any softness will probably be mitigated by the frame size reduction later.
No matter if you choose to use 1.5.1 or 2.0 I highly recommend that you try out the Cineform Aspect HD 4.0 trial.
Steven
http://www.stevengotz.com
