I am uning Premiere Elements 10 on a HP computer with sufficient RAM and an i5 processor. When I upload footage from my Canon Vixia HF r20, it looks fine using Windows media player to play it back, but after putting it into premiere elements 10 using Full HD AVCHD presets (NTSC), it appears grainly and vertival lines are pixelated. This has not been a problem in the past when I have used the same camera and presets. What am I doing wrong?
You don't say how you're judging the quality -- if you've output the video, if you're watching a DVD or if you're just viewing it in the Monitor.
Use Share/Computer/Windows Media WMV to ouput a WMV file. How does it look at 100% (not full screen)? Can you post this WMV to Vimeo so we can see it?