Only if you plan to output a BluRay disc from your Premiere Elements project.
If you are planning to create a standard DVD, there's nothing to be gained by editing at a higher resolution.
Thanks for the response. Just a few follow up questions.
What about the issue of editing for the future? Right now, I will not be editing for Blue Ray. But if I'm going to spend the time editing, Blue Ray like quality could become the future standard and then my clips would be editied and in the correct resolution. I would not really care to re-edit them a few years down the line; once is enough!
Also, if I convert the Flip mp4s to .avi, is there a concommitant loss in quality?
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Flip camcorders are of a type known as point-and-upload camcorders. The video isn't made to be edited. It's meant to be just shot and sent righ to YouTube. So any editing you do will be a hybrid solution.
If you do a Google search, you'll see that people who bought these inexpensive camcorders are struggling with editing the video. I don't know of a solution that will net you a smooth workflow and a quality hi-def video file.
Thanks. Will do the best I can.