Adobe Elements 7 - Jumpy Video

i'm trying to make a video using an avi file i have on my computer. the file plays perfectly outside of adobe, but as soon as i start editing it in elements the preview and final product are both really jumpy and skips alot. help?
i tried to add a video of what exactly it is doing so you might get a better idea of what i'm talking about

As an aside, both Xvid (open source) and DivX are delivery formats only. They are heavily compressed and not meant for editing.
For SD material, like from a DVD-Video (that is already compressed to MPEG-2), you will want to rip/convert to DV-AVI Type II w/ 48KHz 16-bit PCM/AV Audio.
Now, with 100% DVD-compliant (very important) .VOB's, PrE can usually Import the .MPEG-2 inside the .VOB's and edit them. The way to do this is to copy the full contents of the VIDEO_TS folder to the HDD and then use Get Media to Import the .VOB's. [Note: you can just copy over the .VOB's, leaving the .IFO and .BUP files alone, but for me, it's just easier to grab the VIDEO_TS and getting it all.]
There will still be a quality hit from the original MPEG-2 Transcode and compression, but it will be far superior to Xvid, or similar.
Good luck,
Hunt
PS - for more background on .VOB files, see this ARTICLE.

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