Rendering Help
 

OK I'm new to this, so please dont flame me for being a damn fool. I am trying to work out and undertand the best rendering outputs and template to chose ...
my source is mpeg2TS from the JVC HD7 at 1440 x 1080 (25fps, interlaced).
I wantto output for DVD viewing on non HD TV and on PC, I have tried the different obvious templates in Vegas for mpg2 and AVI but the interlacing sucks in the final output. Can somebody help me with my workflow or at least send me off to read some article that might make me wiser?
Thanks
Simon