Welcome to the forum.
For distribution to Windows machines, I would look into WMV. You may have to play around a bit with the bit-rate (often shown as "connection speeds") in the Settings dialog window. Do test the quality of the resulting file, and take notes of what works best to your eyes, based on the file size, controlled by your bit-rate.
Something that you might also want to consider is to Share/Export to a smaller Frame Size, than Full Screen. Again, study the results closely. Only you can decide if the quality vs file size is good enough.
Your camcorder records in HD1080p which is not officially supported in PRE. Try the PAL> Hard Disk, Flash Memory Camcorders> HD 1080i 25 setting as I think this will correctly adjust for the 1080p / 1080i mismatch.
Another user has created additional presets - including Progressive Video options - that you may like to try. Details here: Premiere Elements 8: new editing presets for 24p/25p/30p/50p/60p
Insanity is hereditary, you get it from your children
Thanks, I'll play with the settings.
I’ve been playing around and got a reasonable file size and acceptable image quality with the settings detailed bellow. However one problem remains, object edges appear staircased when I am zooming. Is there a way to solve the problem?
Here are my settings for video:
Format: Windows media
Codec: Window media Video 9
Don’t allow interlaced processing
Encoding passes: one
Bitrate Mode: Constant
Frame: 720 x 540
Frame Rate: 25 fps
Pixel Aspect Ratio: Square Pixels
Maximum Bitrate 2,029.33
Image Quality: 100
Decoder Complexity: Auto
Keyframe Interval: 4
Buffer Size: checked 5 seconds
Any suggestions as what to change in order to get rid of that staurcased view will be appreciated.
BTW, I checked my camcorder’s manual and it states that it records 1920x1080/50i.