have you tried the simpler option of Deinterlacing and upscaling using Dione: DV (or TV) in one shot as a single step? you’ll be suppressed how decent job it does. I use that method and usually I am pretty happy with the results. you don’t need to process the entire movie to check the results. you can select the preview mode. that way you con compare many options pretty fast.
watch this video, it will give you guide lines on how to work with preview mode and with few settings/presets, etc.
if you do select to deinterlace your videos 1st and then upscale a progressive video then you should really check @TomaszW posts with his many ready made presets and test them out.
tip: don’t be fooled by the presets names, try them all. for example I found that his 8k Preset he named it, works best on my old 1990 interlaced Video8 Camcorder videos. so try them all (use the preview mode option to quickly compare)
