[Moved to Premiere Elements forum.]
When you create your slideshow in Photoshop Elements 8 Slideshow Editor, what are you selecting as the Output? It sounds like "Burn to Disc".
If you do that, you need to select
Type of File
Movie File (wmv)
PDF File (.pdf)
DVD-NTSC (720 x 480)
DVD-PAL (720 x 576)
The .wmv version of your slideshow is written, and, when that is completed, the slideshow will open automatically in Premiere Elements DISC MENU section because of the "Burn to Disc" choice that you made in Photoshop Elements Slideshow Editor. That does not mean that you cannot click back to the Edit area.
The suggested route would be:
Photoshop Elementgs Slideshow Editor/Output = Send to Premiere Elements
where the slideshow opens ready for edit, not application of disc menus as the first order of business.
This is a non wmv version of the slideshow. It has the file extension of psess.
Your main advantage in this route is that if necessary you can right click the slideshow on the Timeline and select Break Apart Adobe Photoshop Elements Slideshow so that you can do significant further edits of the slideshow prior to export or burn to.
As for bad disc. What brand and type of DVD disc are you using? Does your player support that type of disc? You must have a disc that the player supports as well as a supported format on that support disc. Could be a bad disc in the batch of discs that you have or a disc type/brand that is not compatible with your burner or the program.
Please review and then we can decide what next.