Hi
I ran your download but with VP couldn't see any lines in the webcam image even with display set to highest resolution. I exported the video to the PC as an an MPEG4 (Native) avi (1920 x 1080 resolution) set at rendering quality 1 (highest.) with constant frame rate 29.7 fps. The resulting film looked OK here. No lines noted in the inset webcam image.
Removed FX from the webcam clip and re-exported......still looked OK.
Exported as FLV at high quality 1920 x 1080........Still looked OK.
Nat