1st, read Photo Scaling for Video http://forums.adobe.com/thread/450798
-Too Large May = Crash http://forums.adobe.com/thread/879967
-And another crash report http://forums.adobe.com/thread/973935
2nd, after your pictures are properly scaled, you need to realize that 300dpi for photo printing has nothing to do with the resolution of a DVD screen... which is, I think, 72dpi... Link to DVD Demystified FAQ http://forums.adobe.com/thread/544206
If you want higher resolution, you need to use a HiDef BluRay disc
Premiere does not do dpi (that is for printing), it does dimensions: height and width.
So what is the height and width of the stills and what is the final destination going to be (dvd, web, ......)
What kind of stills are they: extention wise?
Then we can orchestrate a workflow for you.
Suggest these steps in order:
1) File / New Sequence and carefully select the format that you want your final video to be in (i.e. DV - NTSC Std. or Widescreen 48khz for DVD, a HDV format is you are making a Blu-ray, or RED R3D 4K if you want insane quality and only need play it back on a PC)
2) Edit / preferences / General / Check the box that says default scale to frame size
3) File / import / select the folder that contains all of your photos (this will import every shot in one step)
4) Use the "automate to sequence" feature (see help and play with various options and settings) to bring every photo onto the timeline in order
Thank you very much friend, that has sorted me right out Exactly what i was after, video is well on it's way to completion now. Thanks for all the replies people, so quick to respond and all very helpful, much love to you all and have a superb Christmas won't you