Proper way to capture in Huffyuv?

I been using Pinnacle card with a Phillips chipset to do all my capturing as it has better video quality then my ADVC110, however when I tried playing the video to my TV the video will play with interlacing artifacts, I used VLC as the player and Interlaced Mode Disabled, BOB lags too much on the TV and my PC. I thought I guess I need to burn it to a DVD so I won't see it... I did that but after I inserted the DVD the picture looked like BOB interlace mode on VLC on the PC which still isn't like the VHS to TV mode. I got MAD

I later tried the ADVC110 for the capture and at least while I played its captured video on the PC with VLC interlace disabled... it appeared to play better then the huffyuv avi file so I have faith it will burn to DVD well. So my question is... ¿WTF am I doing wrong with the Pinnacle card?

I read a few things about interlacing filters during capture using VirtualDub but then isn't using filters a fake quality of the video? Perhaps I need to swap fields? I'm a noob into this... Please advice me what to do so when I encode the huffyuv file to DVD I'll see it on the TV as good as the original VHS thanks.

PS. Maybe this note will help... I use a Panasonic AG-1980 VCR whose captured videos unlike the SLV-R1000 allows me to effectively use BOB and other interlacing modes on VLC.