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Jact - if your going to downsize that vid to the standard 320x240 - nobody will notice for sure.
Now that I've inspected a little closer - I do see some very faint horiz lines around her arms when she moves them but it doesn't bother me too bad. I took a look at some of my raw avi's that I've captured and I see the same thing in mine. I use Vegas 4 for my editing. I only see it in high-contrast areas or when something moves very fast. I never thought this was odd and my vids turn out great.
You might want to go ahead and encode some of that footage for the internet and see what the final product looks like instead of looking at the raw avi files.
Also, what program are you using to encode with?
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