ADVC-110 - Horizontal dark lines on DV Capture

I wonder if this is because computers don't play interlaced video too well? However when I export this to the Canopus the horizontal lines aren't visible I can just compare quality which is a little lower then the original tape with the colors being a little less resoluted and everything appearing a little more blury not as sharp... I would say is a 75% compare exactness; this on the same TV. Both input and output use s-video. Back to my question... What can I do to view this video on the computer with the interlace gone? maybe re-capturing?... maybe deinterlace it? But would I still view the horizontal lines?

I used VLC player to change the reendering mode.
ok here is the pictures:

1)Disable (normal playback)


2)Blend deinterlace mode


3)Another one I like is Mean, it shows less interlace artifact then Blend during fast moves, but since I also see the artifacts during slow moves (even though is very little) I prefer Blend instead.
By the way I couldn't take a pic of Mean... the picture appear very horizontal.

So is there a better way to play it back on my computer?