lol, I thought the problem was that the flash transition bloomed outside the letterbox which screams that the letterbox is fake because nothing should affect it.
Yea, the interlacing is a problem. It is especially noticeable on the black & white shot by the fountain. You need to render progressive to get rid of that.
As for the choppiness on the slow motion, what frame rate did you start with and how much are you slowing it down? There is only so much that can be done before you run out of information to make the frames look smooth. Did you try using SuperSampling?
~jr
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