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DVDs are 480i (interlaced). Even when playing on your pc, it still needs to be deinterlaced by the software dvd players. EDTV/HDTVs have their own deinterlacer built in (along with progressive scan dvd players) that will deinterlace DVD to be progressive.
Most of the pc software I've seen are all flag-based deinterlacers (they know when to make the dvd progressive by reading flags from the dvd). Most cheap dvd players use flag-based readers also. The better dvd players out there use motion-adaptive deinterlacing which does automatic deinterlacing based on how it sees the pictures (and not dependent on the flags) like in players using Faroudja chips.
Though most new dvds have progressive flags in them, some are badly flagged and flag-based readers choke when playing them.
The only pc based dvd software that I know of that is motion adaptive is TheaterTek. New versions of PowerDVD and WinDVD may also do it but I have no idea. No idea on macs either, sorry.
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