Zoobie, I can tell that yo

Zoobie, I can tell that you have never used or seen any results from Premiere Elements.

The program is very comparable to Premiere Pro in many ways and version 7 handles AVCHD very well.
Burning with ImgBurn will produce no improvement to the quality of the DVD as any problems will be in the export.
When a DVD is burned the format is converted to MPEG, so exporting as MPEG will have the same issues.

XTR-91, There is no quality settings like you mention available in Premiere Elements 😉

You can get some help with Premiere Elements and editing AVCHD format video at muvipix.com