The Sony FX1 camera can record a lot of detail. Sometimes, when downconverting to produce a standard-definition DVD, you have too much.  Here is one example from an interview that I did, examining a detail area by a shirt collar. The images below are a 1:1 crop from an original HDV frame (using square pixels at 1920x1080). The camera "sharpness" was set to 14; a high setting which for some cases yields good results. In the original frame shown below at top left, the fine pattern of a shirt is reproduced with some moire patterns, but the image looks fine at the original resolution on a laptop screen.  When I simply exported the project from Vegas 6 as a 720x480 widescreen AVI for conversion to DVD, I saw severe moire artifacts on the shirt (see below). This was further compounded by the MPEG2 compression on the DVD, causing the moire bands to pop in and out of view depending on the bit-budget in each separate half-second GOP. As a result, the DVD playback looked truly awful on the same laptop that showed the HDV looking just fine.

You can reduce the fine detail by checking "reduce interlace flicker" properties but even that may not be adequate. I used a linear blur filter set at 90 degrees (vertical) and a strength of 0.001 (the minimum Vegas allows), as shown at the lower left.  This resulted in a reasonable looking downconverted video for DVD.