It looks like normal DV footage to me (as others have pointed out). You have to realize that NTSC DV only has 480 lines of vertical resolution. If you take a straight line and tilt it, you will see stair steps because there simply isn't enough resolution to produce a smooth diagonal line. To put it another way, a single DV frame is only 314K pixels. That one third of a mega pixel or 0.3 megapixels. I'm pretty sure that the backup camera on a Prius has more resolution! ;-) (...and I just checked and the back-up camera on a Prius has 520 lines of vertical resolution compared to NTSC DV's 480! Yikes! )
Are you really "digitizing" these tapes or are you just "capturing" them? I ask because DV tapes are already digital and should be captured via Firewire connection which simply copies the data bit-for-bit from the tape to a file on your hard drive with zero loss. This would give you exactly what the camera recorded. If you are truly digitizing them by playing them back through a digital-to-analog converter only to put the them back through an analog-to-digital converter, you would not be getting the best quality. So if you are using Firewire, you are capturing them, not digitizing them and if you are not using Firewire, you should be for your client's sake.