I use Premiere Elements 13 on Windows 7, 64 bit. I have few clips in a project taken from Sony Handycam. The clip format is .m2ts. They are 1080p with 29.7fps. Total file size is around 3.2 GB. Quality of RAW footage is excellent. But when I burn a DVD (with default values), quality deteriorates making the output look blurry. The DVD is with Menu. Am I making any mistake in the settings or format? When I save the file as MPEG on my computer, it's excellent in quality. Please help.
What are you doing - DVD-VIDEO widescreen on DVD disc or AVCHD format on DVD disc?
What is your project preset? If you do not know, please tell us what the readings are for Editing Mode, Timebase, Frame Size, Pixel Aspect Ratio. What are the properties of the source media going on the project's Timeline?
Not sure what you mean by pointing to default values for DVD since the burn to presets are not usable adjustable. Both DVD-VIDEO standard and widescreen have the same frame size, 720 x 480 (NTSC). In the case of the widescreen, there is a 16:9 flag to stretch the video to about 856 x 480 for display after encoding. The AVCHD DVD will give you a 1920 x 1080 display.
What are you using in your comparison of MPEG file save quality to burn to disc quality? In the Publish+Share/Computer/MPEG, what is your preset? And, are you using the default settings or customized settings set under the Advanced Button of the preset?
Let us start here and then decide what next.