Sorry, but, if you import 5.1 channel sound into Premiere Elements 7, the export is Dolby Digital 2 ch (Stereo).
That is true for all the export choices.
Welcome to the forum.
As ATR says, PrE cannot Export DD 5.1 SS, only stereo.
PrPro can Export it, with the SurCode DD 5.1 SS plug-in (~US$240). I use that constantly, and it works wonderfully. I also do a lot of DTS encoded Audio with the SurCode DTS encoder program - a stand-alone encoder at about the same price. These have to be burned to DVD as an "Optional Audio" Track.
Some other NLE's can also Export 5.1 SS, but I would check them closely, as a few seem to use a hacked, or reverse-engineered version of the DD 5.1 SS encoder, and are not DD-certified. Some have had playback issues with a few of these. IIRC, Sony's Vegas (do not know which versions) will do full DD 5.1 SS Export and is certified.
Obviously, the full certification is of less importance to a producer of "home videos," but playability would still be the concern. I'd recommend going with a DD-certified NLE for the greatest guarantee of compatibility.
How about export to Blu-ray disc (using PreE7 and without the plug-in)? Still in stereo ?
(using PreE7 and without the plug-in)
If you are referring to the SurCode DD 5.1 SS plug-in for PrPro, then the answer is yes. PrE does not have a DD 5.1 SS encoder built into it. I do not believe that the SurCode will interface with it. I know that it will not with PrE 4, as I have it, plus the SurCode DD 5.1 SS for my PrPro on my laptop, and PrE 4 cannot use it.
Now, there ARE other ways to get what you want. Minnetonka offers stand-alone DD 5.1 SS encoders, plus DTS encoders. However, you would also need to author your BD outside of PrE, in a program like Adobe Encore. Many use the Sony DVD Architect for more control in authoring, but I have no clue how well it can handle DD 5.1 SS - maybe great, or maybe not. Someone else (like Steve G.) will have to comment there.
For me, if I also want DTS on my DVD-Video, I just Export appropriately from PrPro, run the files through my SurCode DTS encoder and then Import those into Encore and use them as one of my "optional" Audio Tracks.
If you used the SurCode stand-alone, and a DVD/BD authoring program (other than PrE), you could do DD 5.1 SS Audio in AC3 format as your primary Audio Track. The DTS is optional.
I'd be very surprised to see PrE 8 offer DD 5.1 SS, as the plug-in from SurCode costs about 2x what PrE costs. Still, maybe with some sweet licensing deals, etc., I could end up surprised.
Good luck and happy editing,