Adobe premiere elements 7 issues please help

hi I have a few question that I would really need some help with.
Ok first of all I was using PE 2 until it expire because i am making a wedding video. So then I bought PE 7. First problem I had was the codec it did not support that video even though it did play fine on pe 2. I found a program thats called K-Lite Codec Pack that Work! But now the voices are out and its really jumpy, Can you please tell me how to fix that? Ok now that the second issue now is that I had a look full screen using adobe premiere elements and its not in widescreen and it looks like I was using an 1980s video camera. This one I have is a mini dvd so I just converted them to avi to get them on adobe premium. i played that little dvd on the dvd played and it looks awesome. So is there anyway that can be fixed? One more thing I have been putting some photos on there and they look so pixelated you cant even really see there faces and it was a professional camera 4.67mb a photo and once again they look very good in the tv. please I would really need some help

Thank you