Traditional DVD involves low bitrates and a resolution of 720x480. In other words, it can't look better than bad. Worse, if you push too much onto a DVD it gets worse trying to make it fit. We've been watching HD television and buying Blu-Ray players for a dozen years. Do you have player options other than DVD?
DVD drives and their drivers are getting old and can get confused with new operating systems. If you need to make a DVD, try to make an ISO image file on your computer and then creating the DVD from software like ImgBurn. It may be a pain to do it in two steps, but often that is the only solution.
You also likely have a deeper issue there if the video is so bad you can't see faces. But this is assuming you're talking about something OTHER THAN resolution. As Bill said above, most video today is shot on high-resolution camcorders -- but DVDs are standard resolution, or one-fourth the resolution of high-def. So you need to consider that too.
But that said, what model of camcorder is your video coming from and what format and resolution is your video?
If you look under the Edit menu in Premiere Elements, what is listed on the General page under Project Settings?
How long is your movie?
How are you judging the quality of the DVD? Are you watching it on TV or on your computer? And, if on your computer, what media player are you using to watch it? Windows Media Player is one of the worst for watching DVDs. VLC Media Player is much better at compensating for the differences between how a TV and how a computer plays your movie.