I have just purchased Premiere Elements 9 as It looked like all was OK with the trial. I record Standard Def videos on my JVC Everio HDD camera in 16:9. I started a new project and selected the widescreen setting (which even references the JVC HDD recorder). When I then add media to my project, it says the media is not the same type as the project and so I accepted the project change to suit my video. Whether I accept the change or not, when I preview, it always appears stretched like 4:3 instead of 16:9 and I have just compiled a video and it even burns to disc as 4:3 even though the disc output selection is widescreen. How can I get the package to preview in 16:9 and ensure it keeps the clips in 16:9 which is how they are recorded? The menus do appear as widescreen format.
This often happens with Everio MOD files.
It's an issue related to the video format itself, and is not a problem with Premiere Elements.
About the only solution is to right-click on the clips in the Project folder and select Interpret Footage to set the correct Pixel Aspect Ratio.
Also, as I said in your other thread, you probably haven't selected the correct project settings. If you had, there would not be a red line above your clips when you placed them on your timeline. Is this the case?