The striping is hard coded into your camera. Terminology like interpolation and progressive scan should be known before purchasing a motion camera. Personally I would choose an "Active Scan" CCD that is 4x less detail than any high numbered progressive scan. This is because of those lines, and they are hard to get rid of. The most common way to remove them is through your DVD player itself, it may offer video filters to blur frames. Effectively reducing the screen refresh to 15 fps.
Look in the options of Mplayer and Totem, your find different playback enhancements. Problem is.... usually when you see the lines its due to high motion. And no Codec will fix the lines of high motion good enough to not be distracting. My personal solution is to output the desired video to TV and watch it there. the light presistance of the phosphorous is enough to make watching such recorded videos non-distracting.
For video production and editing techniques, I would suggest to ask a similar question in the Ubuntu Studio forums. Worked like: "Want progressive scan interpolation codecs/tools"