Premier Elements 7 - confusion over mixing video formats

Hi
I have been using a DV camcorder (SD quality) for some time, originally recording in 4:3 format, and more recently in 16:9 format (as we bought a wide screen telly).
I have just treated myself to a new AVCHD Panasonic video recorder recording High Definition footage in 1080 16:9 PAL format onto an SD memory card.
I wanted to take all this footage and put it on my computer to edit it together and start making some films to keep for the future - on DVD for now, and at some point on Blue Ray. To this end I have just purchased Adobe Premier Element 7.0, with Photoshop Elements 7.0 bundled together.
My confusion is that it appears I can only use one format in a "project" as I need to define the parameters for the "project" in terms of SD vs HD and 4:3 vs 16:9. I was hoping to be able to store all of my footage of various quality definitions and screen ratils into a "library" (which I see is called "Organiser" in Adobe terms) on the hard disk, and then pick and choose from the "library" what to put into each "film project" as I make them, mixing formats as I wish. I realise that in this way, the output would itself switch from 3:4 to 16:9 etc on accasions as I switch scene to use a different format, and so may not appear to be the smoothest edit.... but I thought that would be my decision to do if I wanted it. Instead it appears I cannot mix a few minutes if 4:3 SD footage of my son as a baby, with more recent 16:9 1080 HD footage of him as a boy - which is a real shame as it is what I wanted to do....
Have I misunderstood, or am I right in thinking I am limited in this way?
Why can I mix still photos of any format with video , but not mix different formats of PAL video?
Many thanks

Thanks Paul
I have been having go, as you suggest, and as you said, I cannot edit my AVCHD footage in Scene mode as it has 5.1 audio (which I cannot change on the videocam) This is very disappointing as I really wanted the simplicity of the scene editing rather than timeline.... This is compounded by the fact that timeline editing seems even more complicated than normal as each new AVCHD clip I add is placed onto a different video track (not all on track 4 as you thought)- so it is real mess to work out on my screen.... Is this a bug, the way PRE treats 5.1 tracks - or is it just oversight and poor design? Do you think it might be addressed by Adobe?
Anyhow, thanks for explaining what is going on, as without your warning, I would have assumed that the PRE 7 sceneline feature was broken - you would have thought there would be some warning / documentation from Adobe about this, as effectively, a big feature is now unavailable to me as an AVCHD user - and the product claims to be compatible with AVCHD!
Would you be able to advise on a couple more of my "newbie" file format questions?
How do the settings work between setting the initial PROJECT format, and then choosing the various OUTPUT (sharing) settings. For example, if I want to edit a project using AVCHD clips only, and output it to DVD quality to watch on a PC or burn to DVD disk, do I get the same thing if I set the project setting to PAL AVCHD High Def 1080 5.1 and then the share setting to DVD quality output, as I would if I set the project settings to DV 48hz and the share setting to DVD quality output?
My ideal would be to retain the High Definition of the footage through the editing process and then be able to output to DVD quality now, but to be able to come back to the finished edited project in the future and choose to output it to Blueray when I have upgraded my TV and bought a blueray player. i.e. I am trying to make my filming and edited projects a bit futureproof....
Finally, I am just not up enough on all the different format lingos (Mpeg1, MPeg2, H.116 etc) to know what I should be choosing from the list for:
1) outputting edited footage to burn onto a DVD to be used on a DVD player
2) outputting edited footage to save onto a PC to view in the best possible quality on a PC
Do you know?
Many thanks

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DSLR [email protected]
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Thanks everyone. I will continue practicing and learning.
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I have PPcs5 on the pc.
I edit for many different shooters. As such I get everything: Progressive, upper field , lower field . Not to mention from a zillion different cameras & different resolutions.
I output 95% so far to dvd ntsc, 5% BR.
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The Script verifies if the current domain user has an 'J' drive if not, it starts APE, if there is a home folder assigned to the domain user...
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' Script based on Adobe forum post & PSSD Login Script
'http://support.muse.adobe.com/thread/1170813?start=0&tstart=0
on error resume next
Dim oFSO               'For folder creation
Dim objSysInfo, objShell, objNetwork
Dim strUserPath, objUser
Dim strHomeDrive
'WScript.Timeout = 5               '5 Second Timeout
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Fred
For now assuming a NTSC workflow.
I have looked at the video specifications for the Sony HDR-CX260V and on paper it looks you should be able to import/edit/export it output, namely,
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jnrmendonca
It had 4 years of photos and videos on it.
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