I converted the DV file to ProRes and AviSynth worked perfectly. Strange.
DV to ProRes coversion, MediaInfo:
Scan type: Interlaced
Original scan type: Progressive
Scan type, store method: Interleaved fields
Scan order: Bottom Field First
I'm confused about these settings. What is an outlier? Can it include simple dropouts/line flashes as seen on old videotapes?
Quote:Set mode for removing of only black or white spots or both:
- sign = 0 - any spots and outliers (default)
- sign = 1 - only black (dark) spots and outliers
- sign = -1 - only white (light) spots and outliers
- sign = 2 - only black (dark) spots, any outliers
- sign = -2 - only white (light) spots, any outliers
It's varying sizes of horizontal lines I need to remove, so I doubt DeScratch would work.
Depending on the source, you would need to use a custom section and then use multiple descratch calls with different settings.

So it might be worth a try, but could also not help.
Cu Selur