Premiere Elements is not turning your color movies into black & white DVDs. That's not even possible unless you've intentionally desaturated the color (which I'm sure you didn't)!
What model of camcorder is your video coming from and what is the video's format and resolution?
What operating system do you have? Do you have Quicktime 7 installed, per the program's system requirements?
How are you playing the DVD? On your TV? On your computer? If the latter, what software are you using to play it?
BTW, I removed your e-mail address from your post. NEVER include contact information in a post. There are spambots searching the forums for e-mail addresses.