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I'm saved! You can create slideshows with Encore! Hooray!
I have more success with slideshows in premiere and some strange things happened in encore.
You can use Automate to Timeline in Premiere. This includes transitions and fit to markers.
You can set the order of clips in the storyboard project view and choose only those you want to include.
You can play a music track on the timeline, hit the number pad asterisk key on the beat to set timeline markers, then automate your pictures onto the timeline cut on the beat complete with a standard transition.
Then you can play around with scale and position in Motion for each clip as you wish.
Encore is great if you want to have automatically-generated manual slide changing buttons, but not so good if you want music to flow across slides as they are presented automatically and with variable scale and position.
As both Fred & David state, you could do it in either. However, Premiere's capabilities far exceed those of Encore. The Slidshow module in Encore is just a little convenience that was added. Before you begin a Slidshow in Encore, you might want to go to the Encore forum and read that sub-forum (Slideshows). It will show you some of the problems. Encore will work, but educate yourself before you start on its shortcomings and problems.
If I was about to undertake a slideshow, I'd do it in Premiere, but I also have PS to do the sizing, correction etc. If I did not, I'd explore PS Elements, as it has some of the capabilities of PS and also a Slideshow module. It can Export to a file to be placed in Encore or edited further in Premiere. It's designed to interface with Premiere Elements and they are available in a bundle. There is a lot of one-button automation regarding Transitions and Pan-Zoom, that PSE offers. Depends on whether you want ease of use, or total control.
Pro Show Gold is a slideshow creation program, that gets good reviews and high marks from those who use it. Might want to explore it, as well. I've not used it, so cannot comment.
Try to do all of your sizing outside of either Premiere or Encore. In your case, Fireworks would be the better, but some flavor of PS (full, or Elements) would be best. You want the images just large enough to complete your Pans and Zooms. Any larger, and you can choke the program.
There is a lot of useful info on both the PS & Premiere Elements forums. Might want to do a search of each for "slideshow."