video smoothing

[Dwarfer]

Microsoft's brief:

Video created for delivery at low bit rates often contains fewer frames per second, which can result in a "jerky" playback experience. By comparing frames and interpolating between them, the Windows Media Player 9 Series codecs can enhance this content by "filling in missing frames" to deliver smoother motion

remember the famous bullet camera and kick scene in the Matrix where the camera spun a full 360' around the actors, they used a number of still shots from cameras surrounding the actor and used software to smooth out the jerkyness thats caused by obvious reasons.

I have a divx movie at about 12fps but it looks really poor, does anyone know what software will do this kind of rendering.

Thanks