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This is because a CRT SDTV always runs in interlaced mode, and the "video" setting makes the player run in interlaced mode also. They probably avoided the terms interlaced and progressive because most owners would not now how to determine which their TV is.
The other modes sometimes (or always) run in progressive mode, which will work with some CRT HDTVS and most flat screen TVs. But, the result may be distorted depending on the combination of disk coding and and the TV used. Hence the instruction to adjust for least distorted mode.
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Old TV literature, New York World's Fair, and other miscellany
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