Final Cut Pro to YouTube

I am having major issues with interlaced picture here. check out TheYellowMic.com. The interlaced video is very distracting. What setting is off in Final Cut Pro? What are the ideal export settings? Project settings? Clip settings? What can I do???

I shot this with a Panasonic DVX100Bp using Scene File f5 (24p 16:9 letterbox) The project is NTSC 4:3. The capture settings are NTSC 48khz and device control...very few interlacing options...I can only choose progressive when exporting to DV! Helllp!!
 
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