How do you get the lines off the video (defragmentation i believe its called) sorry for the very vague description.
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It is called interlacing. Most camera's shoot in 60i (60 half frames a second interlaced together to create 30 full frames...blah blah blah.)
Edit your video in vegas and when you are exporting select "(None) Progressive Scan" in the options.
I'm not on my editing computer so i forget exactly what it says. Interlacing is ugly....shoot progressive if your camera is capable.