Welcome to the forum.
The only limitation, of which I am aware, is the placement of the watermark banner in the Exported material.
I do not know of any limitations on Burn to Disc, but it would also include the banner.
Maybe others can clarify any other limitations, and good luck,
Can you describe in more detail the steps you're taking to burn this disc?
It's not clear what you're clicking to make what happen.
There is no reason in the world clicking Burn DVD would produce a video file other than a DVD.
Now, if Burn to Folder was chosen, then one would get the VIDEO_TS folder with the IFO, BUP and VOB files inside, but as you say, that would not produce a typical AV file.
Thanks for the reply.
In attempting to burn the disc I click on "output" then choose "burn to disc"> tick DVD box>tick PAL box>click ok. It then opens video library and offers to save as wmw file.
When I try to burn as vcd it appears to work ok.
I had photoshop elements 8 on my pc from a disc and downloaded premier elements 8 a few days ago. If there is nothing in the trial version to stop a dvd from being created could it be a glitch in the download.
It sounds like you may be trying to output your disc from the Elements Organizer rather than Premiere Elements.
There is not WMV or VCD output option from Share/To Disc in Premiere Elements.
If you're trying to output a DVD from a slideshow created in the Organizer, you need to select the option to Send to Premiere Elements (with Premiere Elements open and running). This will create a video on your Premiere Elements timeline.
From there you can add menu markers and DVD templates and, by selecting Share/To Disc, you can output a DVD.
I am glad that you know your PSE, PrE and Organizer, as I would have been totally lost at where the OP was working from, and would have been clueless as to why WMV or VCD were even choices. I learned something from this question.