First, what format are your videos and what model of camcorder are they coming from? Premiere Elements works best with camcorder-based video -- and worst with FRAPS-style videos recorded with third-party software.
What video format you output as depends on how you're going to use your video. Will you display it online? Burn it to BluRay or DVD? Use it in another project? Is this project high-def or standard definition video?
There really are no one-size-fits-all answers in the world of digital media.
Thanks for the info.
I am converting 1000 Plus VTS files for loading into Premire Elements, which file format is best to convert to?
I assume no problem organizing these files, as in Photoshop Elements?
When I output from Premire I would would like to save my work online and on DVD.
I don't know enough about Plus VTS files -- and couldn't find out anything with a Google search -- but it appears to be on-screen recording software, like FRAPS.
If so, I would not recommend you edit these videos in Premiere Elements, especially if you're going to work with thousands of them. I think the process will be more trouble than it's worth.
Even converting the files can be a bear, because it's unlikely you'll be able to convert them into a camcorder-type format the Premiere Elements will edit natively.