Probably the most demanding deinterlacing test is how a video processor can handle a waving American Flag. If the flag is jagged, the 480i/480p conversion and upscaling is considered below average. As you can see here (even when you click for the larger view), the interior stripes of the flag appear are smooth along the edges of the flag and within the stripes of the flag. Based on the result shown in this "flag waving" test, the Onkyo HT-RC160 does a very good job deinterlacing 480i source material where complex motion is present.
By proceeding to following photo in this gallery you will see the results with regards to the differing position of the flag as it waves.