An interlaced composition of odd and even subimage fields is a very common video formation technique. Motion degradation is an inherent problem in portable imaging systems, such as airborne imaging, mobile phones, robots, etc. When relative motion between the interlacing camera and the scene occurs during imaging, two distortion types degrade the image: the edge "staircase effect" due to shifted appearances of objects in successive fields, and blur due to scene motion during each field exposure. In contrast to other previous works that dealt with only uniform velocity motion, here we consider a more general, realistic, and complicated case, in which the motion velocity is not necessarily uniform. The motion in each field and the displacement are assumed to be space invariant. Since conventional motion identification techniques used in other works cannot be employed in the case of variable velocity motion, a new method for identification of the motion from each field is used, and different point spread functions are identified for each field. The restored image is achieved by deblurring each field separately, and then realigning the fields. Results of motion identification and image restoration for various motion types are presented and analyzed for simulated and real-degraded images.