Interlaced modes look shaky by definition, but not all monitors display interlaced modes fine. I've seen old monitors where odd and even filelds are disaligned for some reason, creating a very nasty "shutter" effect. The same model of monitor but in better condition and the same modeline provides a hardly noticeable flicker. But I haven't seen a case where the flicker was so bad that you coudn't read texts.
You can perfectly plug an LCD for configuration with CRT Emudriver. Just plug it to the other output, display panel->detect screens->set the screen with its native resolution. If you're in W7, don't close the display panel, do your config and unplug the screen when you finish, then run detect screens again so the LCD goes undetected, and close the dialog. DO NOT boot the computer with the LCD attached or silly Windows will probably move to that screen.