Yes, Premiere Elements will capture HDV and AVCHD video. If the camcorder your referencing is the Canon HV20 HDV camcorder, the program will work great with it, assuming your computer has the power to run it.
Premiere Elements will not create an HD-DVD. In fact, HD-DVD is an archaic HD disc that no one is supporting.
The program will, however, burn a BluRay hi-def disc. And, yes, you will need a BluRay player to watch it.
The program will also burn a standard DVD, even from hi-def video.