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DM355 de-interlacing issue

I want to know whether MPEG4 encoder has de-interlacing function or not.

As far as I know, MPEG4 encoder does not have de-interlacing function and DM355 does not support de-interlacing function. Only smooth function is provided by DM355. Smooth function is not perfect.

Our camera is PTZ camera which is controlled by user control. So many interlacing effets appears.

I have to decide whether to use DM355 smooth function or not.

Can you provide the detailed information about DM355 smooth function?