If you are making a bluray I would keep the file interlaced uff.
I shot in progressive, though (original footage is 24p). That would just make choppy motion blur, wouldn't it?
You have an interlaced sequence, if you shot progressive you need a P sequences.
My sequence is interlaced? Ugh...I feel stupid. Too many settings to keep track of.
I'll try changing the sequence settings and re-exporting when I get home to see if that works. If it does, I'll mark this problem solved.