stair stepping in Vegas 6
 

I just finished a project in Vegas 6d and I notice some stair stepping in some images especialy whites like snow banks or bald eagle tails. The video from my XL1s (SD) is interlaced. My Vegas properties are set to progressive, blend fields, motion blur to gaussian. I am rendering to MPEG-2 progressive, but I can see the problem already in the avi files on the timeline. What am I doing wrong? or conversely is this to be expected and will a filter fix this issue?

When I first migrated from Premier to Vegas I found it very jaggy.
I remember trying everything I could to fix it from adjusting my graphics card settings to system and Vegas settings. I knew the images weren't jaggy because After Effects displayed them beautifully.

I then realised that my preview quality wasn't set to 'best'.

Hehe, I can be incredibly dumb like that.

Phil, are you changing the aspect ratio at all, or zooming in to frames using track motion or pan/crop?