The FAQs to the right of this forum offer some advice for creating a high-quality upload for YouTube.
But, as we say in the FAQ, the biggest challenge is with YouTube itself -- which will chew up whatever you put up there, re-encode it and spit it out at a greatly reduced quality.
These settings should get you the best possible, however, Assuming your original footage is from a good source and you're using the proper project settings in Premiere Elements.
Hey i have seen some options in PRE to upload to youtube using HD presets, are you not getting them?
To remove the interlacing problem, you rightclick the clips on the timeline and select Field options > Always deinterlace.
By doing this your shared clips will appear much better on youtube.
Does your video show up in the Premier Elements video window as 4:3??? If so, then it sounds like you may be using a camera that compresses 1920x1080 content down to 1440x1080... I have one of those camcorders & Premier Elements 8, unfortunately, PrE8 doesn't seem to recognize that your content is actually 1920x1080 in a compressed format. I know that the implementation of the .MOD format that JVC uses with their HD camcorders suffers from this problem & other manufacturers may have the same problem. Fortunately it can be fairly easily fixed.
1> After importing the video clip under the apropriate 1440x1080i setting, drag the clip to the timeline.
2> Right click on the clip in timeline & select "Show Properties"
3> click the "Motion" drop down arrow to open the motion options.
4> Uncheck the box marked "Uniform Scale"
5> click the "100.0" to the far Right of the heading "Scale Width" & enter 131.5 & hit enter. (I've tried a bunch of different scale width ratios from 125 to 140, 131.5 seems to be the closest fit to get the proper 16:9 aspect ratio)
Unfortunately, it appears that these steps have to be done with each individual video clip every time
EDIT: BTW... when you upload high quality content to youtube, they re-encode it & the "HQ" option will not show up until after it is finished being re-encoded.