If DV film is a "smart deinterlacer" I understand that it only deinterlaces moving areas of the picture.

So if the shot you want to deinterlace is of a person in motion then it would make your subject (the person) look soft and the background details would remain sharp. Correct?

If yes then I think it would be better to deinterlace the entire scene unless you want the person to be soft and background to stand out.

Does this make any sense?

Also, DV Film seems to wash out the colors on my footage but when I deinterlace in Vegas I don't have this problem. Anyone else notice this?

It's a compromise situation, but if you think about it, if the camera is still and the subject is in motion, there will be some motion blur anyway. Perfect detail is only really necessary when you get a good long look at something. End result, you may not notice the loss of detail in the moving object. In fact, that premise of the software is counting on that fact.

Haven't notice any color aberations.

It doesn't matter because the eye cannot perceive the loss of vertical detail in the motion areas anyway - indeed, that's how interlace itself gets away with working as well as it does. You can only easily perceive detail in still areas which DV Film Maker will preserve. I write Film Effects for FCP which is a similar product to Dv Film Maker, so I'm well aware of smart deinterlacing as I use similar techniques.

Graeme