What version of Premiere Elements are you using and on what computer operating system is it running?
What are the properties of your source video including video compression, frame rate, interlaced or progressive, and file extension? What is the bitrate of the source file? The brand/model/settings of the camera that recorded the source video might give us most of the information that we need to set up the project.
Do you have a requirement for video compression and file extension and file size?