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The best ways I can think of to describe this is to think of corduroy.

Ah, yeah. Great description of what bad deinterlacing looks like. I'll have to remember to use that in the future. The thing Bitt posted is an extreme example.

If your TV is supposed to accept a progressive-scan signal, and the Wii is supposed to output progressive-scan, then there should be no problem and this shouldn't happen. The only way this would happen is if the Wii was outputting interlaced video, and the TV was trying to deinterlace it.

Like Bruno said, check and see if the Wii has an option to change its output from 480i to 480p, or from interlaced to progressive, and see if that fixes it.
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Tony Fabris