Horizontal Lace

Just downloaded a movie only to find that the interlace is all wrong (horizontal lines with fast movement) I have converted this svcd file using TMPG and selected Deinterlace(None) in settings. This seems to have cured but I am now left with a svcd file of 870mb instead of 730mb and it wont fit on disk. How do I get around this one anybody.
 
Then you have used a slightly higher bitrate than the original. Lower the bitrate by about 10%, re-encode and it will then fit to an 80min cdr.
 
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