Well if you are working with Premiere Elements 10 or above and want high Blue ray Quality content on DVD discs, then you have got the option of AVCHD disks in Share->Disc->AVCHD.
But due to high bit rate, the amount of content that can be burnt on to AVCHD disks is much lesser than on to DVD disks.
You can change the bit rate and increase the amount of content that can be burnt(but that will once again start diminshing quality)
You will have to manage this quality-size tradeoff.
What version of Premiere Elements are you using and on what computer operating system is it running?
What are you burning to DVD-VIDEO, photos or videos or both? What are the properties of what is going on that Timeline?
What are you setting as the project preset?
Though it's important to note that AVCHD burned to a DVD will NOT play on a DVD player!
This is because, although it's on a DVD disc, it's not DVD video. It's high-definition BluRay video and needs to be played on a BluRay player.
So technically burning AVCHD to a DVD will NOT give you a higher quality DVD. It will give you a BluRay video on a DVD disc.