Welcome to the forum.
Can you give us more info on the Canon MOV files, such as Frame Size, FPS, CODEC used, etc.?
Next, what is your Project's Settings, in PrE 10?
A mis-match between Source Footage, and the Project's Settings, can cause distortion.
Last, can you either post a screen-cap of that distortion, or describe it in detail.
Good luck, and thank you,
The Canon A3300 IS offers 720p video (H.264.mov) from what I have read.
When you open a new Premiere Elements 10 project to edit this footage, what project preset are you setting in the new project dialog?
The project preset should match the properties of your source media. So, if you are indeed recording 720p video at 29.97 progressive frames per second, the project preset would be expected to be:
depending on your location.
Have you been there and done that or are you shooting a different format? That 720p = 1280 x 720 16:9. Would you be using the default project preset instead, that is, NTSC DV Standard 4:3 or PAl DV Standard 4:3? That could be it.
We will be watching for your follow up.