I have a problem creating smooth scene transitions, pans and tilts due to rough, jagged interlacing.
Pans are jittery and made up of double images. Fast moving images are reduced to a single field. To it's credit, the Blue Ray resolution is sharp on relatively still subject matter.
I am using the Hitachi DZ-BD10HA Hybrid Camcorder. Do you have any experience with it?
Interlacing problems usually appear when you are trying to play interlaced material on a progessive scan display eg computer LCD screen. Have you burned your video to Blu-ray and tried it in a Blu-ray player and TV ?
If you do not have a Blu-ray burner you can, if the video is not too long, approx 40 - 50 mins, burn Blu-ray to a standard DVD disc and play it in a Blu-ray player - I first burn mine to DVD-RW for testing. You should then find all your transitions etc are smooth.