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The final quality depends on many things, but provided that your Import source footage is good and DV-AVI (or converted well), the limit will be your Export. If you are going to DVD for play on computer and set-top, you are limited to the DVD specs. Going to Pro will not improve that. If you are going only to computer, there are settings that you can use to allow more of the quality to come through. If you are using HD material and going to Blu-Ray Disc, you can get even higher quality.
Please list what you are starting with, regarding Assets, what your Project settings are and what your final output will be. Folk in the forums can step you through getting the most out of your material, but it depends on the end result you wish.
If you have not done so, post your full Project details in the Elements forum. The answers will be the same as here, but there you'll likely get details on getting the most out of PE. If you wish, you can purchase Pro, but only to do things that PE cannot do - quality is not limited by PE.
To summarize Bill's comment...
Premiere Pro won't improve your quality using the same settings. Tweaking those settings in Elements will be the better solution.
Premiere Elements http://www.adobeforums.com/webx/.3bb574e6/