Can I export to Windows Media 1080p with same quality as Windows Live Movie Maker?

Question

I am looking to replace Windows Live Movie Maker, because of the following:
it keeps crashing
it has occasional problems with audio sync when I use MTS source files
it has very limited editing features (especially inability to increase audio levels for a clip)
However, I would like to still render to 1080p Windows Media files for archiving. Does anyone know if there are settings I could use in Premiere to export to 1080p and get equivalent quality to WLMM?  I have failed to find a combination of settings in Premiere that doesn't mess up the video with horizontal lines during motion.  Here is an example:
When I use the 1080p export setting in WLMM, the video comes out looking essentially the same as the original MTS files, like in this snapshot:
However, I have failed to find any settings in Premiere Elements that will give an equivalent result.  Below is a snapshot from the Windows Media file I exported from Premiere:
And these are the settings I used:
My Equipment:
Canon Vixia HF200
Windows 7 x64
AMD Phenom II x4 945 3Ghz
4GB RAM
300GB 10K RPM HDD
ATI Radeon 4800 Series
Premiere Elements 8 trial
Thanks,
-Robyn

Answer 1

Hi Steve,
Thanks for the response.  I did go back and verify the project setting, and I think I was originally using the wrong project settings.  This is what I'm using now for the project:
And then to share, I went to Personal Computer -> WMV, and selected these advanced settings:
Unfortunately, I still see the jagged horizontal lines like the original screenshot I posted.  I tried playing with other video export settings (constant bit rate, at 8,000 and 20,000 also), and with variable constrained/unconstrained output.  I'm really at a loss for what is going on.  I did confirm that it doesn't have the horizontal lines if I encode to MPEG, but the WMV problem persists.