I've posted here a few months ago but am returning with the same problem...
I have video captured using a Panasonic DVD RAM camera, and saved on the PC as MPEG2 files. This is shot as 16:9 widescreen, and saved as 704x576 (the recommended settings, that can be changed to 720x576 if needed).
I have Studio 10.5 which keeps crashing, but when it does work, it can create decent DVD's.
In desperation, I bought Adobe Premiere Elements 2, but this cannot produce a DVD that is watchable. Although previewing the project lookes fine, the resultant discs are rubbish. The audio is distorted, and the picture is black and white and completely distorted.
I note that Premier Elements (in its settings) is expecting video at 720*576, and it can't be changed. Is this difference in the pixel numbers the root cause ?
I've also had problems with some DV footage, in which any movement is accompanied by flickering. It has been diggested that his is dues to the "field dominance" being reversed. Evertyhing I use is as default, and the only reference to this that I can see is in Elements. The option is lower field first by default, and I can't see how to chaneg this anyway.
Should I persevere of dump the lot for something reliable ? Sony Vegas sounds best....but I ony want simple, non HD editing. Nothing fancy, just something that works.