Both NTSC and PAL follow interlaced scanning. Actually the concept of interlaced scanning was invented to solve the limitation that TV cameras had in the old days coupled to limitation that TV transmitters had.
Unless your CRT is a HD ready CRT as specifically mentioned by the manufacturer and has component (YPbPr inputs), it can, most probably, only display interlaced images. This is irrespective of what is displayed as the resolution and scanning method on the top right.
When you are using a DVD player, you will be able to transmit a progressive scanned image only if you are using a component video connection labelled 'YPbPr', or DVI, or HDMI. If you are using composite, S-Video, or YCbCr connections, you will only receive interlaced signals.
The reason I mentioned that CRTs cannot display progressive signals is that HD ready CRTs are rare and are a dying breed.
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