pukunui: OK. I don't seem to be able to change my DVD player's output to progressive. Not through the menu anyway. But I put it on TV3 through the DVD player and then switched back to the TV and it definitely looked better on the TV.
I am getting a bit confused in places reading this - not sure for instance how you are putting broadcast TV through a DVD player (unless it is actually a recorder) and it is often unclear whether we are discussing a fewwview issue, a DVD issue, or a different issue when I read posts. Assuming (as far as I can gather from your posts) you have a TV with built in Freeview and a DVD player, you need to connect:
1. Aerial --> TV using a regular antenna flylead
2. DVD Player --> TV using component
3. VCR --> TV using composite (assuming you also have a VCR, and you should also loop aerial --> VCR -- TV if you do)
Set the DVD player to progressive, not interlaced (look in the manual, I would be startled if there isn't a setting for this, even the $39.95 cheapies have it).
While I am not an AV expert, I am puzzled by your description of the freeview picture you are getting. If the freeview picture is flaky then, as I understand it, it should be pixellating and breaking up, not ghosting as you describe. This shouldn't be happening, and if it is then I suspect that the TV is flaky. If the picture is breaking up then ikely you don't have a good enough signal. If this is the case, all is not lost, call a good installer in your area and get your aerial checked. A new aerial or a masthead amplifier may be needed - a masthead amp fixed my signal problems. First, however, plug the aerial directly into the TV, and then try a different flylead, to rule out issues with a VCR or DVD recorder etc in the aerial loop or a faulty cable being the cause of the problem. Plug the UHF aerial ONLY into the TV, to rule out the combiner being the issue.
I second Jaxxon's recommendation for an upscaling DVD player. Got one on sale from DSE for $99 (including an HDMI cable) and, while it's not Blu Ray, it does look pretty darn good.