Why are 16x9 photos from PSE8 not filling screen when exported to PRE8?

Question

I batch cropped a bunch of photos to (JPEG) 16x9 and created a slideshow in PSE8 (about 100 slides, 3.2 sec duration, random pan/zoom, random 1 sec transition). I had to click on each photo "properties" and choose "fit on slide" since it was defaulting to "crop to fit" (which was further cropping my 16x9 photos down to something not desirable).
When I "Output to PSE8" it shows up in the sceneline as not filling the entire space. If I click on this slide show in PRE8 and use the "properties" then "motion" and increase the size of the pictures, they come out blurry. However, if I insert one of the 16x9 photos directly into PRE8, it fills the entire screen and is perfect focused.
PLEASE tell me there is an easier solution than having to create the entire slideshow in PRE8. I really like the random transitions, easy batch duration pan/zoom, control.

Answer 1

Thanks for such a quick response Steve. I will attempt to add more information to help clarify your addtional quesitons
The pan and zoom I am using is the default (very minor- just enough to give the perception of movement).
   If I import directly into PRE8 the picture(s) look perfect. It just seems to occur after I port to PRE8
I am not sure what workflow I am following but will be a bit more specific as to the steps I have been taking:
1. I open the PSE8 workspace and choose "organize" (not edit)
2. I click on "create" then click on "slideshow"
3. Next I set my specific defaults (for this project) 3.2 sec interval, 1 second Random transitions, apply pan and zoom to all slides and leave the "crop to fit slide-landscape" checked ( thanks for the tip to uncheck this next time, so I dont have to do it to every slide!!)
4. I then import my media from "add media" "photos and videos from folders" place the photos in the order i am looking for then save the project.
5.I next click "output" and "edit with Premiere Elements" - which open PRE8
6. in PRE8 setup I choose the "HDV 1080i 30" configuration.
The slideshow has now ported over to PRE8. The slideshow bundle does not utilize all of the space in the sceneline, hence my problem (black bars top and bottom of screen). Ironically, when I import via get media (directly from PRE8) the same pictures from my computer file (not in the organizer), they fill the entire space in the sceneline (no black bars on top or bottom).  I have this problem regardless of whether or not I am using the pan/zoom or the unchecking of crop to fit slide landscape in PSE8.
I can send a screen print if you think that might help??
I sure hope this helps, all the other video items that are not related to this slideshow are perfect and this is killing me!!
Thanks, again, Mike