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If you're using version 7 of the program, Arctic, there's a Share preset that's made especially for outputting iPod video!
Though I know of no real alternative -- at least using this software -- to capturing full-resolution DV to output this video. (You say you're using "DV". Does this mean miniDV footage?)
The only solution I can think of would be shooting on one of those $150 Flip cameras and loading those files directly to you iPod (since they're already in MP4 format). In other words, leaving Premiere Elements out of the mix completely (particularly since it, like most video editors, tends to choke on Flip video anyway).
Editing with Premiere Elements, by its nature, requires lots of hard drive space.
Though, for what it's worth, you're probably not doing much wear and tear on your hard drive writing and erasing those 25 gigabyte files. At least no more so than the usual wear and tear hard drives suffer in daily use.
yea, it is from miniDV (im using it to convert Hi8 tapes), but thanks for the input. Im fine with doing extra steps, as long as it isnt bad for my HD. (i have a Dell, which i love, but ive had several hard drive failures on my other Dell computers in the past, so its something i constantly worry about)
.avi footage here is about one gigabyte for every 5 minutes. I am capturing files over 2 hours long,
If you are Capturing as DV-AVI Type II files. this would be correct as DV-AVI is ~13GB/hour of Duration.
I always recommend Capturing and working in the highest quality format possible, and then just Exporting, as is necessary.