A sample file would be good, maybe the field order is reversed?

For rendering to progressive I'd suggest using the free YADIF plugin.

Bob.

Agreed, the YADIF plugin is the best way to deinterlace from within Vagas. If you don't want to go that route, make sure you have a deinterlace method selected in your project properties (interpolate is almost always the correct choice), and as Bob suggested, perhaps Vegas has misinterpreted the true field order of your clip.

Here's a test clip, it's more noticeable in areas of motion, like when I wave my arm across the lens

https://www.dropbox.com/sh/y6aq6y1jl0d8kyz/AABauUTzxDel-yg9yFplElC4a?dl=0

If anyone finds a fix then please do share it with me, it's really got me stumped. Normally I let vegas handle the deinterlacing which usually works out fine for me, I also did a test with the BCC deinterlace from Boris FX but no luck there either. I could try this YADIF plugin, but would like some expert opinions first?

Thanks for the helps guys.

I downloaded your file but I think you have some settings mixed up between camera output and Ninja.

Here is what media info reports:
General
Complete name : G:\NINJA2_S005_S001_T002.MOV
Format : MPEG-4
Format profile : QuickTime
Codec ID : qt
File size : 319 MiB
Duration : 14s 498ms
Overall bit rate : 184 Mbps
Encoded date : UTC 2013-10-12 22:38:49
Tagged date : UTC 2013-10-12 22:38:49
Writing library : Apple QuickTime

Video
ID : 2
Format : VC-3
Codec ID : AVdn
Codec ID/Info : Avid
Codec ID/Hint : DNxHD
Duration : 14s 440ms
Bit rate mode : Constant
Bit rate : 184 Mbps
Width : 1 888 pixels
Display aspect ratio : 16:9
Frame rate mode : Constant
Frame rate : 25.000 fps
Color space : YUV
Chroma subsampling : 4:2:2
Bit depth : 10 bits
Scan type : Interlaced
Scan type, store method : Interleaved fields
Scan order : Top Field First
Bits/(Pixel*Frame) : 3.661
Stream size : 316 MiB (99%)
Language : English
Encoded date : UTC 2013-10-12 22:38:49
Tagged date : UTC 2013-10-12 22:38:49
Color primaries : BT.709
Transfer characteristics : BT.709
Matrix coefficients : BT.709

Audio
ID : 1
Format : PCM
Format settings, Endianness : Little
Format settings, Sign : Signed
Codec ID : sowt
Duration : 14s 498ms
Bit rate mode : Constant
Bit rate : 768 Kbps
Channel(s) : 2 channels
Channel positions : Front: L R
Sampling rate : 48.0 KHz
Bit depth : 16 bits
Stream size : 1.33 MiB (0%)
Language : English
Encoded date : UTC 2013-10-12 22:38:49
Tagged date : UTC 2013-10-12 22:38:49

Other
ID : 3
Type : Time code
Format : QuickTime TC
Duration : 14s 498ms
Time code of first frame : 14:23:04:15
Time code settings : Striped
Language : English
Encoded date : UTC 2013-10-12 22:38:49
Tagged date : UTC 2013-10-12 22:38:49

Note that strange frame size information.
Even on the VP13 timeline, the file looks almost like an old DV file with a lot of "stepping" effect. To me, this not a clean recording as it should be.

This is the result after setting the project properties to 1888x1062, 50i and frameserve to Handbrake for a final output to 1280x720, 25p. Deinterlacing is done in Handbrake, setting is SLOW.

http://dl.dropboxusercontent.com/u/39278380/ninja2.mp4

Thanks for giving me something to go on, I'll have to investigate the camera settings again.. :/

it seems that the 1888x1062 is related to how quicktime sees the file.. seen this on the red user forum:

when you choose Export "Quicktime conversion" in FCP - There is a difference when you select 1920x1080(HD) and 1920x1080 "16x9". one of them results in the "1880x..."

does't really help much in vegas land (?)

Vegas seems to read the file as 1920x1080 and causes additional interlace artifacts. How is it recorded? I had no issues with BM Shuttle 2 1920x1080 60i DNxHD files.

Using a canon C100 which is outputting 1920x1080 50i via hdmi to the Ninja recording 1920x1080 50i DNxHD.