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Deinterlacing is dependent on the encoding tool you're using. There's usually a setting in the encoding parameters to deinterlace, as deinterlacing a non-interlaced video can degrade quality. You want to enable it when you need it.
The more sophisticated encoding tools provide options for how the deinterlacing is done. It can be interpolating the two fields, or simply dropping one or the other fields.
If you don't already have encoding software you can try a trial version of Sony Vegas Pro. I seem to recall it works for 30 days without restriction. Otherwise you might try Adobe Premier Elements or Sorenson Squeeze, both also available on a 30 day trial.
Stay away from the shareware crap. Most usually don't have selectable deinterlacing tools, and unlike the major software from known companies, the shareware usually puts up an ugly watermark until you register it.
All that said ... MPEG2 is an interlaced format. Most decoders (Windows, Mac, whatever) support interlaced media for MPEG2, so I'm not sure why you need to bother with this. You deinterlace when you transcode to a format that isn't interlaced - MPEG1 or WMV or Flash FLV or something like these.
If you're looking to transcode the DV video for editing, then look at the intermediate formats supported by the encoder/editing software you're using. MPEG2 is actually quite lossy and of poor quality compared to most of the newer codecs, like MPEG4. I usually go with a VC-1 (WMV) intermediate at 6 mbps, and apply the built-in deinterlacer. Experiment with the field order and interpolation options for the best look. Use a segment of video with lots of action for the test.
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