Do you have soemthignlike Nero for burning or copying disks? If so then if Premiere Elements can burn the DVD disk image (VIDEO_TS folder) to your HDD) then you can by-pass the limitation it has.

This is my workflow using Adobe Encore. I have little doubt it works fine but I always build the VIDEO_TS folder on my HDD and do the burn in NERO.

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I'm not young enough to know everything!