Getting the best possible output video quality in Premiere 8.0

Here is my PC information:
Windows 7 64 bit
Intel Quad Core Q6600 @2.40 Ghz
4.0 GB of Ram
My Camera information:
Kodak Playsport HD
Records videos in HD 720P @ 60 FPS
Saves movies in .MOV format, 1280 x 720 resolution, and H.264 codec
Now I am playing around with the settings but when I edit movies in Premiere Elements and then save it I always lose a lot of quality. I'm not really interested in sharing the videos on the web, I'm just looking for the best possible quality (as close to how it looks in its original form) for viewing on my home computer. Can anybody help me out with decent export settings that will give me the best overall quality?

Hello Bill and thank you for your respone, I appreciate it. I've managed to get the overall quality of the movie a lot better with using different presets at new project. I am now using the preset NTSC-HDV-HDV720p 30 and that seems to be working a lot better. I also save the final movies as a Quicktime file, with a Local Area Network (LAN) and then I go to advanced and bring up the quality to 100, change it to 1280x720, bring the frame rate up to 60, and set the bitrate at 8000.
I am now having a different problem however. It seems that when I add a music to the background the song messes up frequently. What I mean is that when I'm watching the movie I created the video will be playing normally and then at random times the song will skip or get choppy. Then on top of that, with certain transitions between scenes the transition won't even work, it will just freeze for a bit and then skip to the next scene (On a side note, I leave the "Field Type" as "Progressive" and the "Aspect" as "Square Pixels [1.0] simply because I'm not sure what those are for).
I just uploaded this practice video to youtube, if you want to check it out it's at http://www.youtube.com/watch?v=eVorCPASaGM
Keep in mind I just threw together a couple random pictures and clips just to practice haha. You will be able to notice that the song and video get slightly choppy for some reason.
Thanks in advance!

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