De Interlacing

Ive just captured some old footage back onto my pc, in AVI quality, but I cant be assed with the huge file size, and since I dont really need it in perfect quality im tryna conver to WMV.
But I get those lines, interlacing lines, is there a programme that can get rid of them?

At the moment Im trying WinAvi Video Converter, so I can just batch them all to convert, and it lets me choose whether I want it de interlaced, but its like numbered (pic below)
Ive tryed a few different settings, but still I get the lines.

So what programme can I just download to get rid of them? Or alot better; Just what setting should I used when converting with the inverse option, and de interlace option in WinAvi, see below:
Thanks

[attachmentid=4016]

download virtualdub
download divx
convert your files to divx compressed avi, chose the deinterlace filter too.

Tada.

I use premier to deinterlace

in premier right click on the selceted clip then go to video options>field options then always deinterlace

Sweet, Ill try that when I get home.
Will Divx Avi's be compatiable in Sony Vegas, as Ill be using that to edit.

I dont have premiere, even if I did it wouldnt help me as Ill have to render them all as WMV's Seperatley
Thanks for help though.