Hey Fayah,
I want to help... but need more information. Do you want an HD streaming web video, an SD streaming web video, HD DVD, Blu-ray, or Standard DVD? I could probably help more if I new you delivery format and/or your intentions for this video.
While I'm waiting for your answer, you may want to just import the photos into premire using a standard DV project and make the video there. Make sure you right click the photo on the timeline and click "scale to frame size" AVI is typically 720x480, so if you import photos that are 1280x768 they will be resized, but the video should still be of high quality.
If you want HD (1280x720) you will have to use the HDV project setting. The best HD formats for web will be HD-WMV or a quicktime file using the H.264 codec. I doubt you want an HD DVD or Blu-ray disc.
Like I said, if you can give me a little mor information I could probably help you out more. I just don't want to type a bunch of stuff that doesn't apply.
Best Regards