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I have an article on creating slideshows using both Premiere Elements and Photoshop Elements, MD. It's available in the members are at Muvipix.com.
The basics are that you (a) want to make sure your photos are no larger than 1000x750 pixels. This gives you best performance with highest photo quality. And (b) you import the photos into either program and either simply assemble the stills on your timeline or use the automatic Slideshow Creator. To use Create Slideshow in Premiere Elements, gather all the photos in the project media panel, right-click and select Create Slideshow.
My article discusses in greater detail all of the options and which might be the best methods and techniques.
http://www.muvipix.com, a site set up by a number of experienced Premeiere Elements users with some support from Adobe, offers one of the most friendly, helpful forums on the web and includes a large number of complimentary products including tutorials, tips, DVD templates, stock footage, motion backgrounds and sound effects. And, for a small annual fee which we use to keep the site up and running, you can have unlimited downloads from our ever-growing library of high-end tutorials, tips and products.
You can select the images in the Project view, and then right click and select the Create Slideshow option. Via this you can also set the transitions and transition time between each image.