Canon XA10 when objects move fast, the image looks like it is interlaced

I just shot a video, and I put it into Vegas 10e, and when I was playing it, it looked like the interlace was off. I saw spaces/ lines in moving images. I am shooting for broadcast on CW, and Need to know how to set up the cam to give me a smooth image.

Here is the properties info:

General
Name: 00013.MTS
Folder: G:ALL TV SHOW FILESTV_show_4Raf n joel
Type: MPEG-2 Transport Stream
Size: 346.37 MB (354,680,832 bytes)
Created: Wednesday, April 11, 2012, 8:02:00 PM
Modified: Tuesday, April 10, 2012, 3:59:32 AM
Accessed: Wednesday, April 11, 2012, 10:39:24 PM
Attributes: Archive

Streams
Video: 00:05:41.842, 29.970 fps interlaced, 1440x1080x12, AVC
Audio: 00:05:41.842, 48,000 Hz, Stereo, Dolby AC-3

ACID information
ACID chunk: no
Stretch chunk: no
Stretch list: no
Stretch info2: no
Beat markers: no
Detected beats: no

Other metadata
Regions/markers: no
Command markers: no

Media manager
Media tags: no

Plug-In
Name: compoundplug.dll
Folder: C:Program FilesSonyVegas Pro 10.0FileIO Plug-Inscompoundplug
Format: MPEG-2 Transport Stream
Version: Version 1.0 (Build 1560)
Company: Sony Creative Software Inc.