Back in July, I've devoted a sizeable part of my multimedia article to the question of dynamic video de-interlacing. Back then, the only way of (dynamically) getting rid of the pretty ugly effects of interlacing was jailbreaking your iDevice and installing the not very finger-friendly, pretty awkward XBMC on it.
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Best all-in-one multimedia player GoodPlayer receives deinterlacing support + my fix to a bug
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