The problem is most likely that you're using FRAPS video as your source for Premiere Elements.
We've seen this come up in the past. Unfortunately, the two aren't compatible, and Premiere Elements won't produce good video from FRAPS no matter what settings you use.
If you're aware of a converter that can convert your FRAPS output to true Type 2 DV-AVI, that would likely solve your problem.
I'm sorry but Fraps produces good quality videos, I've used it quite a lot, and if I want to make for example a WMV HD file from the same source of Fraps videos, it just works perfectly, of course there might be a bit of loss, but nothing like with the Flash Export, so that is definitely not an issue with Fraps. I had the same troubles with a video made from a digital camera and then processed through Adobe, which confirm me that either there is a problem with this export format, or with the parameters I used.
It's not a matter of the quality of the video that FRAPS produces, Aurelien. It's the fact that FRAPS video is incompatible with Premiere Elements.
They are like oil and water. You can not get good results from Premiere Elements from a FRAPS source -- even if it is HD! Sorry.
No, there is a way (which I found after several days of trial and error). It's true that PE doesn't like videos encoded with fraps (audio not playing is a typical symptom), so before you import them into PE you must re-encode your frap stuff using a compatible lossless codec. I use the lagarith codec using virtualdub, google them. I've also had some success seperating the video from the audio in the fraps file using the "direct stream copy" option in virtualdub, and importing them into premeire seperately. Premiere seems to have less issue with fraps stuff then, for whatever reason. I prefer to just re-encode it.
The forums that I've read universally agree that Premiere isn't the best option for encoding and exporting certain kinds of files. The best process involves exporting from Premiere using a lossess method, such as quicktime set to animation, video, or none. From there, take the file and encode using either Quicktime Pro for h.264 stuff, or Adobe Media Encoder if you want to make a flv file. (Adobe Media Encoder also does a decent job with h.264 with it's new fv4 container, but flv is more compatible and the encoder it uses is as good or better than h.264)
I realize that this isn't a cheap option because you need to have adobe media encoder, which I think only comes with flash cs4, but it was the only way I was able to get the results you're talking about.
edit: Oh well look at this. Wish I saw this before I had to figure it out on my own.
I link to that PrPro Wiki entry, whenever I see FRAPS mentioned. I just did not notice this thread earlier.
You beat me to the punch!
I ensure you that PP and fraps go together, I edited over 150 machinima's in PP. http://mamachinima.eu shows some examples. I make full HD machinima since December 2009. (got a high end pc and monitor then), and before that I worked on a consumer machine.
Always have used fraps and premiere. There was a bug in fraps (2009), causing PP to not recognise the audio, but that has long been fixed now.
I film in fraps, 1920 x 1080, then import in CS3. Edit, render, export uncompressed and then encode in H264 fullHD wide. (quicktime). A bit of a workaround, but hey I had my work shown on 4 x 4 screens, and it looks great.