Windows 7 - Problems with Deinterlacing

Built a new system and I am having problems with deinterlacing correctly in Media Center 7..
It is very sparadic, and is usually on high motion areas. When I see it, I can rewind and it does the exact same thing again.. (it seems especially worse on my sons cartoon channels)
I've compared recorded/live shows to my Vista MC I had been running for years with an HD 3850 and it doesn't have any of the problems the new system has...
Turned off all "video enhancements" in CCC except for Auto Deinterlace Method and Pulldown.. (Turning off pulldown helps on some of the problems...) But not all
Seems to do it more with 480 content, HD seems good to go..
Running stock Windows Codecs on both systems..

Tests I've done to narrow down the problem...

Tried my Vista machine with the HD6850 and it did fine as long as Pulldown detection was turned off...
On my new desktop, I tried my HD3850, the Intel 3000 on my cpu, and the HD6850.. All of them had problems with the video at some places.. The HD3850 with Auto Deinterlace and Pulldown turned on eliminated some of the "problems" with the jaggies.. The Intel 3000 and HD6850 only eliminated the same problems as the HD3850 with the Pulldown (Film Mode Detection for Intel) turned off..
To further complicate things, I have a second recording of the same episode and it has the problems elsewhere in the video....

ALSO.. My Windows 7 Laptop shows the same problem.. It too is running an AMD video card...

Attached is an image of the problem I'm having.
Thanks!