When you started your Premiere Elements project, which project settings did you select? (You can check -- but not change it -- underr Edit/Project Settings.)
Your camcorder shoots in a variety of formats. However, assuming you shot in HA or HG format, you should have selected the project settings for Full AVCHD 1920x1080. (Your camcorder also has options to shoot in stereo or 5.1 audio, and you must select the correct setting for it also.)
If you've selected any other project setting that would explain the stuttering you're seeing. It's an frame rater interlacing conflict. Try setting up a project as I recommend and put some test footage in it. If you then output test footge as a WMV, it should look terrific.
Note that great improvements in working with AVCHD have been made in more recent versions of Premiere Elements. Version 11, for instance, automatically sets up your project to match your video, so you would not have had this issue.
Great stuff. Checked and it works.