I don't know the answer, but I also wouldn't mind some information on the matter. I currently use Premiere Elements at my office, and the results that I get aren't too impressive. The animations never look crisp. I typically render out each sequence as an Avi from Viz, then I join them together in P-Elements. Before importing the Avi's to Premiere Elements, I play back the avi movies and they look great on their own. Should I be doing it differently? Should I talk my office into upgrading to Premiere CS3?
We always had problems with inserting animations into PP also. In order for it to work, I would use the smallest compression resulting in a crappy looking video. The last animation that I did, I suggested that when they got to the point in the PP presentation to show the video, I had them minimize PP and play the video from the desktop. This allowed me to show the movie at a higher resolution. Another Idea was to have 2 laptops and 2 projectors.