I've been authoring some interlaced DVDs I've got it pretty well down and encoding process and authoring is at the point that gets the best possible results I can get.
The interlacing looks pretty much fine too with no visible comb's teeth on panning motion or in almost any circumstances. There is one, acceptable little glitch that I'm just curious about which is that the one time that I can see comb's teeth is when people in wider shots blink. Their eyelids do display the telltale horizontal lines as they close. It doesn't happen all the time, and usually not in close ups. Considering how well the rest of the disc has turned out I consider it acceptable but I'm just curious why people blinking seems to be predictably a point where these artefacts are visible.