Not in my experience. There are, in fact, dozens of possible output options, every one of which is customizable so that it's optimized for whatever use you select. So you can certainly get a video output that looks virtually identical to what you put in. Of course, a lot depends on what type of video you're using as your source. High quality hi-def videos, like HDV and AVCHD, are obviously going to produce sharper, higher def videos than video shot with an iPod. But the quality of the output from Premiere Elements is every bit the quality of output from Premiere Pro, Final Cut, Vegas or any other semi-pro or professional video editor.
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