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I'd recommend against importing DVD video directly into Premiere Elements. You'll get much better performance and better results if you convert them using MPEG Streamclip first, per the FAQs at the top of this forum.
That really defeats the purpose. He is trying to keep it to a minimum of steps with extra programs. If PE4 can't import a dvd without the MPEG slipstreaming then the program is worthless.
Steve: In the FAQ it says set to Lower field, but that depends on the source video. If your source is upper you don't want to convert the fields on top of the format conversion.
Sorry the program is worthless to you, crritter.
For your workflow, you'll get much better results with an MPEG-based editor, like Sonic MyDVD. I don't think you're going to get what you're looking for in Premiere Elements.