Hey guys. So here is what I have tried. First I exported the video from Premiere to a MPEG-DVD, then imported it into Encore as an asset, then created a new timeline with both the audio and video. After playing it, flickering is noticeable at the top, bottom, text and just the overall quality was poor. I then decided to create a new project file and then re-imported all my assets and repeated the process. Problem solved! No flickering and the quality of video is at it's best. What I did was changed from NTSC to PAL...could this of been the issue? Let me know. I have re-opened the old project file with the flickering issue, imported the same file and noticed it's asking me to trans-code the video but not the audio. Currently in the process of doing it now to see if that solves the flickering issue, in an attempt to not have to re-do the entire project in Encore again lol.
Yes, your Encore project should have always been PAL. And no, you can't change a project to PAL once it is started as NTSC (or vice versa).