I have been taking a very close look at the XLH1 clips and I have noticed a few blocks of color interlaced lines in the progressive clips. You have to seperate the UV channels and when you look at each channel the two color difference channels have a few 8x8 blocks that are interlaced. The Luma channel is fine. I thought the progressive (F) mode on the XLH1 flagged the video to encode as progressive? The rest of the image does look to be encoded as progressive.

720p HDV from the JVC camera has not had this issue out of all the clips I have seen.

This makes me think the encoder on the XLH1 is only an interlaced encoder and doesn't really do a progressive mpeg2 video.

Then again this might just be the tradeoff of frame movie mode.

Thomas, may You provide some pictures, where we can see the blocks?