Hey, another Kansan! Cool...
Basically, S10-onwards does "OK" if you start a progressive-scan project, using progressive-scan source (or still photos), and outputting to progressive-scan output.
If your input is interlaced, you can pretty much forget outputting as progressive as being helpful at all. It appears that Studio doesn't "deinterlace" as much as it simply drops one set of fields (thus throwing away half of the detail), then uses one of several sets of schemes to double the lines back up to full-size again. It (usually) doesn't look all that good as compared to what the full-quality interlaced output would have.
Deinterlacing works pretty good when you are DOWNSIZING your files (e.g. outputting your file as a 320x240 file for playback on a portable media player), but when you are trying to keep the highest quality possible, it can look jagged/ugly as compared to interlaced output.
In my experience, anyhow.
BittMann