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There's at least a bit of misinformation being posted here. CUE and ICP, while related in terms of the net visual effect and the fundamental cause (interlacing), are different beasts.
CUE is introduced in the MPEG decoder when video material encoded as (effectively) progressive is decoded as interlaced. ICP is a inherent limitation of all interlaced material subsampled using a 4:2:0 scheme (i.e., pretty much all DVDs). It is possible to have an MPEG decoder and DVD player with CUE. They all have ICP, however, and this bears no relation to whether or not there's a CUE problem.
CUE and ICP artifacts can be largely filtered out, with a small loss of vertical chroma resolution. It's always better to have no CUE, however, as there is some image quality degradation when CUE artifacts are generated and then filtered. ICP is always there, so the best you can do is try to filter out the artifacts.
- Dale Adams
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