Rather than struggle to work with native avchd video in Premiere CS4, I decided to first convert the clips to Apple ProRes using Voltaic which reads avchd and utilizes an export for Quicktime codecs like ProRes.
There are settings in the prores quicktime interface related to interlacing and I'm not sure whether the setting should be unchecked or checked.
I am shooting with a Canon at 1080i/60 so the source is interlaced.
Within the prores interface should I select the checkbox simply titled "Interlaced" because the source is interlaced or should I de-select it so it doesn't mess it up with further interlacing mischief?
Also there is an additional checkbox setting to "Deinterlace Source Video"
Should I just leave this alone or would it be a good idea to deinterlace prior to editing in Premiere? The destination will end up being Blue Ray dvd and h264 avi.