Did you guys run into a "vertical banding" issue when you were working on deinterlacing PSX video? I'm processing some videos of the PSX game Ehrgeiz, which runs in the same mode as Tekken 3, namely 360x480 interlaced (or 400x480 including the overscan).
This issue is much easier to describe with screenshots so here's an album of them.
I think the problem is due to dithering. Ehrgeiz has dithering applied to nearly the entire game, which is what I think is causing the light-dark bands that are appearing. Deinterlacing is some how picking this dithering up and causing this visual artifact. Just scaling the still-interlaced video does not produce these vertical bands (mostly), it's ony after deinterlacing that they show up. Here's unmodified, but stretched (point) footage:
And here's after a bob filter and stretching (lanczos):
The banding is fairly obvious, and you can see that there is roughly a light-dark-light pattern that makes it stand out. I've used much more advanced filters like QTGMC and yadifmod and gotten the same result. I've included close-up shots of the banding in the album, including some shots of the Tekken 3 clip that was shared in this thread exhibiting the same problem.
I watched the HQ downloads for the Tekken 3 encodes and neither seem to have this problem, so I'm wondering if someone who did the encoding for those videos recalls how they solved this problem, or if they even had this problem at all. I'm using AviSynth and VirtualDub for most of my work. I have tried quite a few options for the QTGMC deinterlacer dealing with noise and grain retention, but haven't made much progress there.
Here's a link to the clip I used for these examples.