If you're zooming in on a still, right-click on the still on the timeline, select Field Options and check the option for Flicker Removal. That will remove teh interlacing flicker that sometimes shows up in photos.
Thank you Steve. That has fixed the problem. Impressive response time too! Can I also get more transitions for premiere elements 4?
There are a number of ways to make transitions, using keyframing and some of the effects presets in the program. You can also create custom wipe patterns using the Gradient Wipe. I've got articles on both of these processes on the products page of http://muvipix.com.
But you can also get additional transitions from Burgers at http://www.burgers-transition-site.de/downloads/transitions/index.html
The transitions that are designed for Premiere Pro will also work in Premiere Elements. Just load them into your plug-ins folder and restart the program.
Can I also get more transitions for premiere elements 4?
Two good add-ons for this are: Pixelan's SpiceMaster and ProDAD's Heroglyph, plus their Adorage.