Also, what model of camcorder is your video coming from and what format is it in?
Did you use Premiere Elements' Add Media/From Flip or Camera to get the video from your camcorder to your computer?
Also, what do you mean "is coming out Pixelated"?
Where is it pixelated? In the Monitor panel of Premiere Elements? On your output? On your TV? There are dozens of variable factors here, and we need you to be specific in order to help you track down your issue.
When you use a proper workflow, a BluRay disc output from 1920x1080 video will look virttually identical to the original footage.
Film is coming from Gopro Hero 3. Im converting into a avi file. It is both pixelated in the moniter panel and in the end movie. rendering is helping a little but still does not look as good as the original file.