I figured it out! Ha! For me this was a UNIX newbie problem coupled with confusing documentation. For all you SGI users out there with a bunch of squahed renderings (sorry NT) after you have rendered out file.0001o.tga, file .0001e.tga...etc, open a unix shell. If you type interlace -h you will get the help file but it's not so helpful. Move to the directory that contains you rendered files and follow the instructions but leave off all the brackets - this is what got me. In other words type interlace -a # # # -e # -t tga and then the file name as file (no extension). Then it will process your images
ex.
interlace -a 1 100 1 -e 4 -t tga file
will give you file.0001.tga to file.0100.tga and they won't be squashed no more!
Hope this helps someone out there! Now if I can just fix my flickering highlights....
Eric Keller