Berngu
I have downloaded your VOB and ts files and have had no problems working with them in Premiere Elements 12/12.1 Windows 7 64 bit.
I used the project preset (set manually) for NTSC AVCHD AVCHD-LITE 720p30.
There were no problems creating great quality PAL DVD-VIDEO Widescreen on DVD disc whether the Timeline source was your VOB or .ts video clip.
Exceptional good video quality results.
Consequently, I would ask....
1. QuickTime. If you look at Publish+Share/Computer/QuickTime, do you see the QuickTime presets?
2. Do you work with the Internet connection on in case some sort of feature activation is needed by the program?
3. Could you post a screenshot of what you are seeing as a very bad DVD-VIDEO Widescreen on DVD image?
Please let me know if you want me to do any further tests on the VOB files or .ts file that you sent.
Thank you.
ATR