My settings seem to be all correct, PAL footage was shot at a shutter speed of 1/60th.

Standard AE deinterlacing does a nice job, but MB's deinterlacing leaves interlacing artifacts (its deartifacter isn't helping either). It seems to detect the footage and comp settings correctly (I tried it with the comp on 23.976fps and 25fps, both give same result). And MB is applied on interlaced PAL footage, just the way it's supposed to be.

Any ideas on how this could happen?