Hi,
I do a lot of VHS, Hi8.... tapes to DVD and USB drive. I usually use frame blend to deinterlace, but I'd like to use a more advanced solution. I'd also be interested in any noise reduction solutions you guys can suggest.

The finest deinterlace tool you can use is the MCBob plugin for avisynth. It is extremely slow and getting it all setup, at this late date, is not easy.

The finest noise reduction you can get will be NeatVideo. It costs money and is slightly slow but you can get incredible quality out of it.