Just one man's opinion,
For DV, either NTSC or PAL interlaced, I would stay with the internal MC (very good), or much better yet, Canopus Procorder which rules on interlaced DV. For progressive output CCE is the absolute king of the hill, although some people think a lot of TMPG. IMO, attempting to use just one Mpeg encoder for all output styles is less than optimum.