Sad to report that it didn't work. In fact, the display on the secondary monitor was worse than before. When I choose "Video Capture Device", there is no option for deinterlacing. It brings up the Blackmagic selection box for different types of capture (1080i, 720p, etc.) I've got a screen capture if you would like to see it. I couldn't figure out how to upload it with this post. Too bad, I was hoping that this was the fix we've been looking for.

This is not good news. I appreciate the offer to deinterlace through software but I can't have the delay since it's live video. I've been doing some research on cameras and apparently some of them actually capture in 1920 x 1080 and therefore would not be interlaced. Do you think that this would solve the problem?

Ok, let me know when you get the software de-interlacing in place. Will that take long? I need to decide whether I'm going to keep the Blackmagic card fairly soon so I can get my money back. There's no need to have a $350 capture card laying around that won't do what I need it to do.

I've been reading a lot about cameras and it seems that some of them actually capture a 1080p stream, but then when they record to their media (tape, sd card, hard drive), they downscale it to 1080i. From what I've read, if you take the signal directly out of the HDMI output of the camera, you would get 1080p. The one camera that has made quite an impression in the last year or so is the Canon HV20 and its successors (HV30, HV40) and SD/HD-based models (HF20, HG20, HG21). I really like the SD/HD cameras since I'm looking to get away from tape, but I need to make sure that they have 1080p output. Any thoughts?

I'm wondering, though, if a different camera would really solve the problem because the Blackmagic card seems to support 1080i and 720p, but not 1080p. I talked to Blackmagic tech support and they said that it wouldn't display or capture a 1080p stream, so I'm not sure one of the cameras mentioned above would solve the issue. Help me out here. What do you think?