Image quality in slideshow is significantly deteriorated

I am new to Premiere Elements (3.0) and still have much to learn about navigating and using the software. I have no prior experience with other comparable products so I am a newbie in all respects.
I took a series of still images from a 7 megapixel camera, all shot in highest resolution, and placed them into a slideshow in Premiere Elements 3.0. Image quality is significantly deteriorated when I view the slideshow, which I've not yet burned to dvd, my intended output.
I don't understand why the original resolution of the images is degraded. I'm hoping there are simple settings I must change. reading through the software documentation thus far has not provided the answer.
do I need to take the original images and save them to a different format in Photoshop Elements before placing them into a slideshow for dvd output? if so, does this need to be done one image at a time (I've got 400 images) or can they be converted as a group?
I'm getting desperate and would appreciate anyone's advice.

The slideshow exported from PE3.0 will be at NTSC (or PAL) resolution so 720x480... so significantely lower resolution than your source photos and it will be interlaced. When viewed on a TV it will look fine but not so good on a computer monitor. Try burning to DVD and viewing.
Also PE3.0 might have problems working/burning photos at such a high resolution. As the final export it restricted to 720x480 you can resize your photos to 1000x750 and these will be easier to process by PE3.0

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Image quality in slideshow is significantly deteriorated

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