Did Apple fix the video quality issue in iMovie '09?

I am a casual video editor and iMovie 08 had the perfect user experience / functionality for what I want to do.
However, the known video quality issue (throwing away interlaced scan lines) made the result unacceptable since I archive our family video on DVDs. I have been forced to use iMovie HD for that reason. I have tried tricks such as converting the original DV files to AIF and deinterlace prior to import into iMovie08 but that did not seem to work either.
So does anyone know if Apple fixed the video quality issue in iMovie '09.
MESSAGE TO APPLE IF YOU ARE LISTENING:
Please fix the video quality in iMovie09 if not already. Yes, the quality is ok for YouTube or Internet video but for those of us who want simple editing to archive our family video we cannot accept poor video quality. Dropping an interlace field effectively halves the vertical resolution. Thank you.

Please explain this in more detail when you say Adaptive Deinterlacer. Are you talking about another program? If so, what program and what are the specific steps.
Also, sounds like you are recommending imovie09. By saying to do the above, are you saying imovie09 still causes you too loose significant quality like imovie08? Are you saying you can use imovie08 or imovie09 with these steps to get high quality video or just imovie09? I guess I just need more specifics on how you do what you are describing and how imovie09 fits into this versus imovie08. I joined this whole discussion trying to figure out if upgrading imovie09 made a difference regarding the whole quality issue. I know it has more features, but I am more concerned about he quality of the video right now. Thanks.

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