What Presets to choose from PRE8?

Question

Preface to my questions:
The Photos are from a Canon SD600:  photos were taken at high resolution 2816 x 2112
From PSE8 Editor:  I used “process multiple files” button to reduce the size of the photos to “JPEG medium” because my system was crashing with the original photo size.  Unfortunately, I could not find what the “medium” pixel size was when I chose it.  The re-sized dimensions are now in the high 400 pixel size.
-          Should I have chosen “JPEG large” instead? 
-          What pixel dimensions are associated with “large”?
-     Will the "JPEG medium" sized photos view decently if the preset is set at HDV 1080i?
In the end, I want to be able to view my video on a HDTV with the best resolution possible.  From slideshow mode,
-          my question is WHAT PRESETS should I choose under NTSC?:
-     my HDTV is 1080p.  Does it matter if HDV 1080i is chosen?
Hard Disk, Flash Memory Camcorder Presets
HD 1080i 30 – For video from high-definition (1920x1080), non-AVCHD hard drive or
flash memory camcorders (such as the JVC GZ-HD7).
HD 1080i 30 (60i) – For video from high-definition (1440x1080), non-AVCHD hard
drive or flash memory camcorders that record in 60i format. (The PAL equivalent is, of
course, 50i.)
Standard 48kHz – For video from standard-definition 4:3 hard drive camcorders as
well as video from DVDs. It is very important to use this or the following preset with
standard-de  nition MPEG or VOB sources because it will automatically reverse the
  eld dominance in your video, correcting an interlacing issue that can otherwise cause
  uttering in your output videos.
Widescreen 48 kHz – For video from standard-definition 16:9 hard drive camcorders
and video from DVDs.
HDV Presets
HDV 1080i 30 – For video from tape-based, high-definition HDV camcorders that
shoot full HDV at 1440x1080 pixels.
HDV 720p 30 – For video from tape-based, high-definition HDV camcorders that
shoot full HDV at 1280x720 pixels.

Answer 1

The first challenge is that video from these types of still camera records as something called an MJPEG-AVI -- a format that's usually not compatible with Premiere Elements.
The second is that, according to the online specs, the highest quality video that this camera will produce is 640x480. So there's no point in working with this video as a hi-def or BluRay project.
My recommendation would be to first convert the video to a DV-AVI using Windows MovieMaker or Super, using the instructions in this article from the FAQs to the right of this forum.
http://forums.adobe.com/thread/415317?tstart=0
Then I'd recommend opening a standard DV Premiere Elements project and editing your video. Output your video as a DVD. Your disc player will do a better job of upscaling this DVD than you'll get if you try to up-rez your 640x480 video and output it as a BluRay disc.