>    Unless the TV searches for the shapes in the image (as an MPEG-4 codec
> would) and then interpolates those shapes. I would be surprised if it was
> that advanced.

Yes, the "genuine" 120 Hz and 240 Hz TVs do this (even 60 Hz TVs have 
had "noise reduction" schemes for ages that use similar motion 
estimation techniques).

There is however a much cheaper way to do it that is almost as good. 
That is showing the image at normal 60 Hz, but for each frame only 
putting the backlight on for 50% of the time (at double the brightness). 
  This is called "black frame insertion" and makes any motion look much 
smoother.  With LED backlights this is easy to do.

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