Yeah, I've worked with a Hong Kong film, so I know all about misaligned dub-overs ;) Heck, in Star Wars, there's even lines where people's lips say an entirely different line (i.e. Leia's lips say a 70mm line in Empire, but the 35mm audio says something else). In this case, I'm just talking about the problems introduced by mix-and-matching the PAL and NTSC audio and video, that's all.

As for interlacing artifacts, I think it was stated early on that digging out bad IVTC frames wasn't in the scope of this project, but that may have changed.