Elements 8 ALWAYS reduces widescreen 16:9 to 4:3 - Please help!

I've got a new Panasonic camcorder and have recently taken some film of the Festival of Speed.
I've tried to edit it and save it to the PC but in the viewing pane during editing it was clearly 4:3. There seemed no way of correcting this so I plugged on, hoping it could be saved as Widescreen 16:9. It couldn't, and the resulting video looked terrible.
I even tried uploading it to Youtube, where there was a "widescreen" option. All this did was shrink the video in the viewing pane on youtube, still distorted.
I started again, this time paying careful attention to the opening choices. Seems there are various formats I can choose from, the ones relevant to me being:
PAL DV standard 48hz
PAL DV widescreen 48hz
I've tried both, but it's still 4:3 either way.
I've also tried watching "raw" copy from the memory card, that's correct 16:9, and I've tried loading a clip into Windows Movie Maker and that displays in the viewing pane as 16:9 and saves perfectly happily as 16:9. So I don't believe that the camera is at fault.
I've spent so far five hours on this, including a tortuous 30 minutes to Adobe support who basically said I need to pay them money for them to get it to work properly, which seems a little unfair if it's a glitch in their program.
I'd really appreciate help with this one, it is causing me a massive headache!
Many thanks in anticipation.

I'm really amazed and disappointed that Adobe can bring a product to market that doesn't simply have a 16:9 video size preset button, it's the normal standard video format these days.
Well, PrE does have the Video-standard for both NTSC and PAL DV-Widescreen, but that is for the Video-standard of 720 x 480 (NTSC), or 720 x 576 (PAL), with the appropriate PAR (Pixel Aspect Ratio) to produce those, 1.212 for NTSC and 1.422 for PAL. Your camera shoots neither. That is the problem. Why Panasonic, and a few others, have decided to deviate from the Video-standards, is a mystery to me.
The workaround to that non-standard footage is to choose either the NTSC, or PAL Widescreen, depending on where you live, and then Import your footage into that. Run Interpret footage on your Clips, and set Scale to Frame Size, to get the footage up to the Video-standard Frame Size w/ the proper PAR (Pixel Aspect Ratio) to accomplish that.
I'm going to have to consider the £50 this program cost a waste of money and try and find a program that does create movies in 16:9.
Adobe offers a 30-day, money-back guarantee. If you have not owned it for over 30 days, you can return it for a full refund.
It is not the 16:9 that is the problem, but the Frame Size that Panasonic chose, that is the issue. A lot of smart phones, that shoot video are also going with the smaller Frame Size, and those users are in the same boat, as you are.
Because Adobe has partnered with Nokia (I do not now what Frame Size the Nokias produce) on some recent projects, I would anticipate that PrE might soon get that different Frame Size. Whether it will be in PrE 10, I cannot say.
Good luck,
Hunt

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