I'm not the greatest avisynth wizard/witch/whatever, but here's a quick attempt in avisynth:
changefps("ntsc_film")#29.97 -> 23.976 from a hardblended source
SmoothD2(quant=4, num_shift=3, Matrix=8, Qtype=4, ZW=0)#deblocking
Do mind that my usage of aaa seems to make it darker without that being the intention, you might want to use daa or daa.daa instead. Should be looked into. Unfortunately (some of the) ex-jaggy parts now look as if they're dancing. :S
There probably is a better way of converting this unfortunately hardblended source to 23.976, the method I used keeps blended frames. Not sure if changefps("ntsc_film") or TFM.TDecimate wpuld do a better job here (you probably don't even need to use TFM on this as nothing in the source probably doesn't look interlaced, though MediaInfo tells me this is interlaced?), though the result is very likely to be the same with both filters because of the nature of this source. It might be better to just leave the framerate as it is in order to not possibly lose frames that should be kept. x.x
And of course mandatory deblocking because this is has noticeable macroblocking at parts. This does make this thing even smoother though, which is an unfortunate side-effect. Settings might need to be tweaked.
TL;DR: With this filtering it looks less jaggy and blocky, but also unfortunately smoother and formerly jaggy parts now look as if they're dancing. I'm sure someone else would be able to make a much better and hopefully less destructive filterchain. Though keep in mind only so much can be done with a bad source like this (DVD is terribly encoded, the source got seriously messed up in the process). Also feel free to correct any possible faults here.