Unless I am missing something important, the term Smart Rendering refers to the process of Exporting MPEG material, that has not changed, without Transcoding. Some NLE (Non Linear Editor) programs allow for this. Important Note: notice the term, "that has not changed," as if you add any Effect, or overlay (PiP, Title, etc.) then Transcoding will be needed. The same holds trure for areas of the Clips, with added Transitions.
PrE does not support this type of Smart Rendering.
It does support Rendering, that basically creates proxy files for smoothest playback. This ARTICLE will give you background on that.
If you are talking about something else, please correct me.
I agree with your definition of smart rendering, but understood that PrE does support smart rendering for MPEG and, since version 9, also for H.264. I learned this from this article abaout what's new in PrE 9:
Improved support for AVCHD video. AVCHD video can now be edited natively in Premiere Elements! That means you don’t have to render the video (if you’re using the correct project preset) on the timeline until you add effects or transitions to it.
I think you have misinterpreted the sentence you quote. Prior to PRE9 any AVCHD clip you imported would require a complete timeline render before PRE would give any kind of acceptable preview during the editing stage of your workflow. In practical terms you would see when you imported the clip a red line across the whole length of the clip. In PRE9, providing you select the correct preset the need for that render was no longer necessary. In practical terms there would be no red line across the whole length of the clip. In all versions of PRE when you share the project to any format then PRE will re-encode the footage.
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Well, the term "Render" is thrown about, and as it applies to all Adobe programs, it means to create proxy files for smoothest playback. The Smart Rendering means to Export with not additional Transcoding for unchanged parts. This ARTICLE will give you background.
Others use Render to equal Export, but not Adobe.
Hope that this helps,
As Neale points out, PrE handles AVCHD natively for editing. Many other programs have to create proxy files for editing, and not just for smoothest playback.