DVDFab DVD Copy mode does not fully decode or re-encode the video, so there is no way to accomplish this (or make PAL->NTSC conversions) unfortunately. DVD Ripper will allow you to deinterlace the video but of course would have no menus, so no joy there either.
The DVDFab Movie Server might solve this problem for you I think or possibly try VSO's ConvertXtoDVD, I think it did full decode/encode on DVDs allowing deinterlacing, changing frame rate, PAL<->NTSC etc.
UPDATE: The "7" version of ConvertX still has these features. Not sure what it does with menus.