You've probably got a number of issues going on that are overloading the program. It's also possible you don't have enough clean, freshly defragmented space on your C and D drives. Even if these drives are huge, fragmentation to keep Premiere Elements from grabbing the contiguous space it needs. You are working a) an unusually huge video for a DVD (DVDs can only hold about 70 minutes of video), b) you may be using unnecessary large photos (see below) which can choke the program and c) you don't say where your video is coming from, but Premiere Elements needs to work much harder on video that's not miniDV, HDV or AVCHD -- and these elements are all combining into a program meltdown.
First, when you set up your Premiere Elements project, which project settings did you select? Have you ensured that this setting matches precisely your video footage? If it does, you should see no red lines above the clips on your timeline before add effects to them. Is this the case in your project?
Second, have you ensured that your photos are not larger than 1000x750 pixels in size? Using photos directly from a camera (some of which can be many times video resolution) are the chief cause of program choke.
Have you rendered your timeline (press Enter) whenever you see red lines above your clips on the timeline? When your timeline is rendered (the red lines turn green) your program will perform more efficiently and you'll have less issues with transcoding your DVD. However even this does not overcome the issues listed above.
Thank you so much! I reduced the size of all the photos and then rendered the entire movie (who knew!!) and it has worked perfectly.