How Do I Change Video Output Quality When Capturing .DV Video From Camera?

I am experimenting with both this Premiere Elements 10 trial, as well as other brands of software, finding the best one to purchase for my needs.
In some other software, I not only indicate the source quality, but the output quality to the computer.  If I want to upload the full quality video files to edit for retransferring back to a DV video tape, that's fine, but I will take up a lot of computer memory, relatively speaking.  On the other hand, if I know that I'm going to be editing the video for replay on the computer or over the web, I can tell the program to upload to MPEG4 or some other conversion. 
I am not seeing this as an option with the Premiere Elements.  Can anyone tell me where, if possible, I can alter the output quality before the program begins the download?  I certainly can find the input quality (such as .dv 4:3 ratio).  I'd prefer not to always have to download the full quality video, THEN have to covert it as a separate step.
Thank you!

The PRE workflow is (1) Create your project (2) import your assets (3) sequence and edit your assets (4) create your menus (5) share your project.
The quality of intended output has no effect on your project settings which should match your source footage. Done this way optimises PRE's performance - as it can internally process far more effectively when matched to a 'native' format.
For standard definition the ideal format for PRE is DV-AVI Type 2. This is almost lossless and operates at around 13GB per hour.
Compression to an output format (e.g. DVD, or an iPod, or viewing online) is managed through the share process.
You could:
Import your footage - e.g AVCHD, HDV, DV-AVI, VOB
Share it to a compressed format - e.g. MP4
Delete the original capture source (in Step 1)
Work in a new project using the compressed output (in step 2).
But if you do this your final output quality will be lessened through working with a compressed original that you will then compress again. I can't see what you feel you will gain by this - disk space is so cheap now why wouldn't you want to give yourself the best quality source to work with.
Note that once you are finished with a project you can archive it off to free up your disk space.
Cheers,
Neale
Insanity is hereditary, you get it from your children

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