From the GSpot screens you are not recording in the 1920 x 1080 mode of your camcorder. The first file is Xvid and is designed to be played rather than edited. So convert your two files to DV-AVI Type 2 and PRE should edit them fine. Follow the advice here: What tools can I use to convert my video to DV-AVI?
The first option should work - load the first file into a PAL-DV-Standard 48kHz project (this assumes your from a PAL region (as first video is PAL). Then immediately export it from the Share tab - Personal Computer - DV-AVI. Repeat for the second clip. Start a new project (again PAL-DV-Standard 48kHz) and import the two files you just created.
You should be fine with any other SD clips that you can convert to DV-AVI. But if you convert HD clips for use in this SD project then they will become letter-boxed. If you later create an HD project and want to add these SD clips they will have bars left and right.
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Note that, according to these specs, that camera shoots in twoo true AVCHD format (as well as a number of non-standard formats that Premiere Elements doesn't support).
Are you shooting in 1920x1080i or 1440x1080i? That will determine which project preset to use.
If you are using one of the other video formats, you may not be able to edit this video in Premiere Elements without a conversion.
I am shooting in 1920x1080i.
Could you please tell me presets for both 1920x1080i and 1440x1080i?
Thanks in advance.
Have a look at part 1 of my free Basic Training with Premiere Elements tutorial series on Muvipix.com. (In fact, why not check them all out!)
In Part 1 I show you how to set up a project and define the presets.
There are more details in my free Steve's Tips article "Project Presets in Premiere Elements" on this page on the Muvipix.com site.
I have gone through all your tutorials, very helpful indeed. Thank you. another thing is that I used the correct preset but when it comes to share it in my personal computer or sites like youtube, the quality becomes very bad. What can you suggest me to do for exporting? Thanks.