Yeah, one thing is for sure, it's not the rolling shutter.

I bet if you do an inverse pulldown on that footage, the issue will disappear. I initially thought it was related to deinterlacing but I think maybe my video player was doing that since the hybrid frames looked soft and deinterlaced but then I reopened the file and it looked like it was just plain interlaced. Deinterlaced or not, those hybrid frames look soft because of the frame mixing and I think that is the problem.

Noah and Mikko:

Footage is captured in 60i on Premiere and then sent to 60i m2v file in the render. I might have done CC to original file...

Pretty pronounced, right? Seems to be most prevelent in a left to right pan with a tilt up...

Heres hoping that pulldown is issue. I guess I will have to try the Cineform product again, because I understand it doesn't need flags, to see if doing pull down eliminates the issue.. In another thread, we are "campaigning" to Canon to do something to get the HV20 footage have flags added, for pull down purposes, so the standard editors like Vegas and Premiere can do the pulldown.

Edit: It actually play pretty clean in Windows Media Player, except for that bit of floatiness, for lack of a better word...