Can you do a screen shot of Premiere so we can see the issue? Or maybe use the grab feature in the Program monitor in Premiere to grab a still if the actual output is showing the same issue.
Is Program monitor resolution set to FULL?
For best results, use Photoshop to resize hi-resolution stills to the size of your Sequence, such as 1920x1080 pixels for HD, then Premiere is not scaling your images.
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Here are some screen shots of what the images look like once pulled inside Premier, and of the project, barely completed yet. The 2 lower shots do not show the pixelatio much, as they really show in the project itself. I did screen shots of them within the project, which are very distorted.
My files are many different sizes, and there are hundreds/thousands from 15 years to the present, that I will just be making into videos for easier viewing. It sounds as if I would need to change the size on all to be standard and you think 1920x1080 would be best? Mine are all much larger than that.
My screen is set to full..
I haven't used Premier fully yet, I know I have to hit ENTER to render so there are no 'red lines' in the timeline, but how do I actually produce the final video when I am done with all edits to it?
I would suggest working in Lightroom, not Ps, it has much better batch functions. I'd also suggest subscribing to one of the how to video tutorial sites, you have a long road ahead of you, I say this because of your question about image size and your mention of "digitized".
Your monitor's resolution is most likely 1080 X 1920, higher resolution monitors are just becoming available, but they are expensive. When you open any image (captured at a higher resolution) unless you zoom in to 100%, your monitor combines those pixels reducing it to 1080, even if you shot it at 4300 X 7300.
All images on a computer are digitized, what you are seeing is best described as pixelated images, where the resolution displayed is less than the native resolution of the monitor. There could be other issues with how you have set up Pr, it's always best to do an export to look at the output.
If your goal is simply to display your images in a video format the time and effort to develop the skills you need may not be what you want to do, you may want to find someone to work with to make your movie.
Are you working with Premiere Elements software? This is not the Premiere Pro CC interface that I'm seeing in your shots. Wrong forum.
In any case, HOW do you wish to deliver the final product - DVD, Blu-ray, online? Full HD resolution is 1920x1080, or you could do 720p which is 1280x720. DVD is standard definition at only 720x480 pixels. While DVD may be one of your delivery options, I would not EDIT at 720x480. In Premiere, set the sequence to 1080p or 720p and edit as HD (1080p preferred since you are starting with high-res photos, might as well maintain as much quality as you can).
I'm not familiar with Premiere Elements, but there should be a File > Export option where you will find different formats to which you can export, and you can set various parameters there.
Even though your photos look pixelated in the preview window, how do they look if you actually export a test clip? Maybe it will be fine, try it.
I finally produced the movie the other day and images look gorgeous again....thanks for all the feedback!