Going from HD to standard definition on Elements 10

MPEGs are interlaced, so they're going to look a bit sketchy on a computer screen, depending on which video player you're using to play them. Also, remember that your standard def video is only going to have about one-fourth the resolution of your original footage.

That said, there's no reason to go through the extra step of outputting an MPEG to create a DVD. You can Share/Disc/DVD directly from your original video.

BTW, the quality of your output in version 10 is affected pretty dramatically by your project settings. Did you select project settings for 720p when you first started your Premiere Elements project? You can see your project settings under the Edit menu. Remember, the closer your project settings match your source footage, the better your results will be.

Again, I'm not sure why you're outputting a movie to create you DVD from. Are you working with a third-party DVD authoring program?

In Premiere Elements, you can just go right from your edited timeline to your DVD output. No need to output an intermediate video file.

If you have a DVD burner, that is the option you use (AVCHD is HiDef, not Standard Definition, so will not play on a DVD player)

1280x720 is widescreen video, so choose the widescreen option.

Also, note that your finished DVD will be interlaced -- as it should be, since you'll be playing it on TV. So it may not look really good on your computer. But it should look just great on your TV!