Why is my input device blurry or squished (seeing interlace)?

To remove the interlace (to deinterlace) you must set the width and height of the screen division where the capture component resides to match the input resolution.

For example, for most DVD and other sources use a width and height that is a multiplier of 1.5. So try and set screen division to 720×480 and put the capture component inside that area to de-interlace.