IVTC is needed to convert 23.976 FPS Film to 59.94 1/2-FPS (2:1 interlaced) NTSC video. IT has nothing to do with PAL, since PAL video is 25 (full) FPS and the film chain simply speeds up the shutter by 4.12% to make the 23.976 FPS film sync-up to the scanner. That’s why PAL movies are around 4 minutes shorter than the original film or NTSC versions.

Simply put, IVTC takes 4 frames of film and converts them to 5 odd + 5 even 2:1 interlaced video frames yielding 5 full frames. Using round numbers, 4 frames of film are converted to 5 frames of video, and since 4X6=24 (film) and 5X6=30 (NTSC video), 6 iterations of the IVTC process produce about 1 second of video.

Okay?

its pretty straight forward anyway,
limited is limited release movies (not mainstream from the major studios)

STV – straight to video. did not get a theatrical release.

bad.ivtc, no.ivtc -
PAL is mentioned here, but this should be NTSC. NTSC has the frame rate of 30 and uses a 3:2 pulldown (called telecine) of a 24fr/s movie shot on film. for PAL they usually speed up the movies from 24 to 25 frames (4% speedup) and no telecine is needed. though there is a new method of telecine for pal called 2:2:2:2:2:2:2:2:2:2:2:3 pulldown, but it’s rarely used.
Change PAL tot NTSC and i can live with your explanation, more info on the matter here: http://en.wikipedia.org/wiki/Telecine

interlaced –
the lines you are seeing are not black, though people will see the darker lines more obvious. they are the image of the last field (half frame). you already provided a nice link with explanation.

qpel.not.allowed –
this is a nuke for the Xvid scene (tdx2005), as in the x264 scene you can use similar methods. Hence the codec you are referring to should be Xvid and not x264 (of H.264 which is not used in the scene).

field.shifted -
this means that the fields of different frames were taken instead of the 2 fields from the same frame in the de-interlace process. It can lead to seeing lines/interlace artifacts on the video. it can be fixed with a special filter, but generally you should avoid these releases.
more info here: http://compression.ru/video/old_film_recover/field_shift_en.html

dupe.frames, blended.frames
these are particular instances of bad IVTC. for example using a 2:2 pulldown on a 3:2 pulldown source, gives you an extra frame(dupe). using a 3:2 pulldown on 2:2 pulldown source you lose a frame and hence 2 frames are blended.

custom.quant.matrix
The quantumization matrix is how the video is sampled during the encoding process. you can setup the matrix freely and sometimes you can get a lot more detail out of your encode using another matrix. Especially animation seems to benefit from a different then normal matrix, though most movies/scenes can benefit from a special (fit for that scene) matrix. The problem with it is that most standalone dvd/xvid player can’t handle them too well if at all. That why in the Xvid scene it is not allowed to deviate from the standard matrix.

hope this helps to completing your nuke-guide.