Ok, I figured out how to do it, but it makes no sense.
I burned the DVD using a Widescreen option and the resulting video came out with the proper Normal Screen aspect ratio.
Since this was posted to the Tips & Tricks sub-forum, which is a repository for articles on how to do things in Premiere, I will Move this out to the main PrE Forum.
Glad that you got this handled.
Also glad that you sorted out your issue so that everything worked for you, but....
What were your .avi files? Any chance you could post a MediaInfo (tree view) properties readout for one of them?
Can we assume that your Premiere Elements 9.0/9.0.1 project preset was set to NTSC DV Standard 4:3?
And, are you saying that the burn to DVD preset = NTSC_Dolby DVD (which would be 4:3) gave you distorted DVD-VIDEO on DVD disc?
Answers to the above might avoid similar problems moving forward.
Yes, the default burn caused the video to stretch out on the DVD disc. The problem was, indeed, with the burn. The disc played distorted on every platform I played it on, ie. computer, DVD player, TV with built-in DVD. By forcing the burn to a wide-screen format, the resultant DVD played in proper (non-distorted) format.
The avi was made with windows media by running a Hi-8 camera playback through a DV camera, then firewire to the computer. Please note, the avi was viewable both on windows media AND in Premiere Elements 9 in the proper aspect ratio. The distortion only occurred when the clip was burned to DVD.