If your telly has component inputs (usually a gree, blue and red RCA connector), then you can feed component in from the DVD player (if it has those too).

Composite it just about the worst signal you can use for video, S-video much better, then RGB/Component is best.

Unless you TV is an LCD or Plasma, it won't de-interlace nothing, CRT TV's work of an interlaced signal afaik.

Best thing to do is get the best DVD player you can afford, if it has component out, and your TV accepts it, use this connection, otherwise use RGB, then s-video. But NOT composite.

Hope this helps
Greg