Video captureing - interlaced (tv/xbox360)

Rens

So i got myself a 3rd capture device, an older pinnacle dazzle,

I connected my 360 to it and for the first time i got some color in my video.
i believe the 360 signal is PAL 60, and is interlaced.

now im captureing halo3 video clips i saved over the year,

so when i capture i get these nasty lines here and there, specialy when i move around alot.
if you visit youtube, and watch some halo3 vids, you notice some also have this, but alot do not.

my 360 is directly connected to my pinnacle
strangely enough, my video is only good when i leave the setting on NTSC, if i change it to PAL, weird blocks and colors appear.

is it better if i use a different setup?
put the xbox in my tv first, use a splitter or something?
(every other time i tried to record it via my tv, it didnt understand that i set it on a gameing channel, and it still captured the program that was running on the regular channel, have not tried it with this pinnacle yet)

What about using a dvd recorder? and just ditch the whole capture device thing..

also, does the videocard i use influence the quality?

Does anyone have any idea how i can avoid/ deal with interlacing and quality, or should i just deal with it and edit the footage and do some deinterlacing, (but thats just nasty)

suggestions?

glib

Why is de-interlacing the footage nasty? That's how I would deal with footage taken from an interlaced medium for display on a non-interlaced one.

Wheel

If you can capture fields instead of frames it would be better, if not then dumping to a DVD ,DVR or DV camera would be the easiest.