As far as I can tell (and this goes for both PowerDVD 4 and ATI DVD player), software mode looks like a progressive scan picture whereas I can see alot of interlacing in scenes with alot of motion when I enable hardware acceleration. I'm guessing that this is just a hardware limitation of the 8500 and there's nothing that can be done about it. It's still strange though. Do any of you experience the same thing?