I'm using Virtualdub to preview a bunch of different methods for deinterlacing the content. Here are a few samples (all of this is on our more zoomed out footage - still working on fixing the other file, though it might not be possible to recover the data):
This is using "discard," which cuts the vertical resolution in half and only uses one set of fields:
Next up is "double," which takes either the even or odd scan lines and doubles them, ignoring one set of scan lines (discard with 2x the vertical resolution):
Next is "blend," which takes the average of both field lines:
Increasing in complexity, next is the "bob" algorithm:
Finally there is the "yadif" algorithm, which is similar to "bob" but slighty more complex (the information on these is rather sparse, however):
From looking at the stills alone it seems that the bob and yadif methods produce the best results - it's difficult to judge them in actual video sequences since everything in the field of view is constantly moving. The yadif algorithm is apparently fairly good at dealing with static scenes which we currently have none of.