Ditch the Gordian Knot script, it's causing all your problems.
The reason why your motion is jerky is that you are using "force film" in DGIndex, then performing IVTC in the script. You only need one or the other, not both.
The reason your aspect ratio is wrong is because you are cropping the black bars (GK is designed for Xvid encoding), but then upsizing what's left to DVD resolution. You don't need to do any cropping or resizing if you're going from DVD to DVD.
(Also, regarding the error you mentioned in post 11 - VirtualDub has been able to decompress YV12 since about 2004, it no longer uses the Xvid codec for this. Are you sure you got this error with the latest release?)