Vegas 8.0c project with an HDV (m2t) Event (clip), of a tree blowing in the wind. For artistic reasons, the Event was reversed (Event: RightClick > Reverse).
When I blasted the project to Mpeg2 (PAL widescreen) to a DVD and viewed it on a CRT TV, that clip (only) looked juddery. Examining the project and the Event (just now), the field order was specified correctly for HDV, namely Upper Field First (UFF).
The judderiness was found to be removed when either I changed the field order to Lower Field First (LFF) or else I removed the Reverse (e.g. by reversing it a second time). So whenever I reverse an interlaced clip, I need to reverse field order also it seems.
Sounds like a bug to me - I'd expect the clip-reverse operation to compensate for the field order.