Rendering disaster

Desperate for help!
In a nutshell: In rendered footage the pan is not smooth but composed of tiny jerky movements. It makes viewing a bit painful on youtube and very painful on a DVD on TV. I record with a Sony HD AVCHD camera and edit on Sony Vegas Pro8. I do not get this problem when viewing footage directly through the TV from the camera.


I have tried numerous rendering settings between NTSC and PAL, original footage is in PAL. Attached is an example, it will be immediately apparent. Ignore the low quality of the footage, that is what Creative Cow offered, but the jerky quality is still visible.

http://reels.creativecow.net/film/rendering-disaster

I will try any combination anyone suggests.
Also can anyone explain the following
1) the difference between Blend and Interpolate fields?
2) the difference between 8-bit and 32-bit, floating point? How does each effect the image?
3) Target bit rate, which is best setting, 64k or 6.67M - Internet/LAN?
4) the difference between gaussian and gaussian(asymetrical), which should one choose?
5) Which Field order is best, upper, lower, none?
6) Best pixel aspect ratio?

Sorry to ask so much. I have tried to be as succinct as possible, but hope not obscure, I simply get very confused not knowing how each setting interacts with the others to find the best one. I really like this SONY program and would be very reluctant to give it up.

I will happily provide some of the rendering settings I have used if anyone asks.

Thanks so much in advance
Andrew