This video frame, shown here at actual resolution, clearly displays the interlacing artifacts from combining the two 540-pixel fields into a single 1,080 vertical. If you zoom in (not shown), you can also see artifacts from the horizontal interpolation necessary to combine the three 960-pixel-wide (a guesstimate, since Panasonic does not supply this info) sensors into a single 1,440-pixel-wide image.
The SD1 shoots low-noise, low-light video, though it's a bit softer than we'd like. The automatic white-balance issues that affect the SD1 in daylight also crop up indoors. The frame grab on the upper left, shot on the daylight WB preset, is closest to correct; the one on the bottom right was shot on auto. (The one on the left was pulled from the middle of a zoom sequence, hence the softness and slight distortion.)