PAL smart evaluates the current image and the PAL-shifted image, then takes the less interlaced one and smart deinterlaces it. Since chroma is not taken into account, it can lead to small chroma error.
It is a bit on the slow side, but very efficient when the video is of the good type.
It can be used also as a cheap IVTC, as it will reconstruct the progressive frame, but will keep the video at 30(nbsp)fps and will not discard duplicates to reach 24(nbsp)fps.