I captured some material from my FX1 using ConnectHD and the intermediate format, settings set for Interlaced video, Medium filesize. But when I edit in Premiere pro 2.0, I get weird interference lines:

http://www.frozenphoenixproductions.com/misc/connecthdprob.bmp

Depending on whether I select "Best" or "Draft" as the preview quality, I get more or less of those weird lines, respectively. "Automatic" appears to generate the same results as "Best".

I am using the trial version but I do own it; I am waiting to resolve the issue of not "deactivating" before moving it to my new system.

Can someone help me out here? Am I doing something wrong? Please let this be a common problem with an easy solution...

You can't use Connect HD with Premiere Pro 2.0, as PPro ships with some very old CineForm components that are not compatible with the new output from Connect HD. If you Aspect HD all of Premiere Pro's component are upgraded including the playback engine for real-time multistream work. Connect HD is primarily designed for Vegas. Download Aspect HD and this problem will go away.