BluRay h.264 is under the Disc output option.
That's technically not an MP4, I don't think, but it uses the same compression and most BluRay players can play it.
MPEG-4 Part-10 AVC is technically identical to ITU-T H.264 Standard
The ITU-T H.264 standard and the ISO/IEC MPEG-4 Part 10 standard (formally, ISO/IEC 14496-10) are jointly maintained so that they have identical technical content. The final drafting work on the first version of the standard was completed in May 2003.
Premiere Elements 7.0 does not support AVCHD export. However there are other export prestes available which conform to your AVCHD footage. Also you cannot export HD in DVD. No presets are available as yet.
You could choose:
1. Burn to Blu-Ray with appropriate presets
2. Export to MPEG2
3. Export to H.264
Hope that helps.
Could you tell me the specs of your computer that your editing on? Wanna make sure my Alienware quadcore can handle editing AVCHD. HAve you had any problems? Do you transcode before you edit? What kind of camera do you have.
Sorry for all the questions. Thanks in advance.