Finder of things, Doer of stuff
I haven't tried to figure out how to get the game to recognize them but I did deinterlace (actually I beleve it's telecined and not strictly just interlaced IIRC) all the prophecy vids for when I converted them for the holovids page. The dolby logo isn't that great a quality in general deinterlaced or not, but the rest of the movies look decent I think. I might eventually play around with a few things as there might be some ways I could improve it (changing it to proper 24 fps instead of NTSC rates for example) - https://download.wcnews.com/holovids/wcp/index/
Most of the software decoders can be set to do deinterlacing on the fly so that you can have less awful looking movies in-game but they dont really do a great job on telecined footage (3 progressive frames and then two interlaced frames). There's usually a codec setup tool with codec packs that allow you to force deinterlacing on.
After a bunch of playing around I've actually come across some interesting wierdness in the Prophecy videos. The footage is a bizarre mix of both telecined and interlaced footage. All the live action DV seems to be regular NTSC telecine. The CG footage is interlaced. However the VOBs mix both types within the same file. This creates problems when trying to deinterlace as each type of footage requires a different process. A fix for telecined footage will fail to remove all the combing from the DV portions. Fixing the DV portions makes the telecined portions stuttery and so on. The solution (because this is a video game running on LCD and LED panels for the most part and people aren't watching on old CRTs) the fix that works for both and also preserves the motion info of the video is to convert the VOBs to basically double the frame rate with each field getting it's own frame basically. With some minor denoising and stabilizing You end up with about a 59.94 FPS smooth video that doesn't have that blurring you see with most automatic real time deinterlacers.