What version of Premiere Elements are you using and on what computer operating system is it running?
The exchange in the following thread should make interesting reading as it relates to the question that you ask
Win 7 64.
The link provides the answer to my question. The "unoticeable loss of quality" is interesting, is this view held by the majority of users?
Those were the views of those replying in that particular thread.
"Unnoticeable loss of quality" is indeed interesting. From my point of view there are no stock answers here relating to video re-encoding, and generalizations such "unnoticeable loss of quality" needs to be put in context to the particular details of situation.