You can use Adobe Premiere Elements to open a new Photoshop (PSD) file in Photoshop Elements, with dimensions and aspect ratios equal to those of your project. (Photoshop Elements files and Photoshop files both use the PSD filename extension.) For example, if the Adobe Premiere Elements project is DV NTSC (720 x 480) with a pixel aspect ratio of 0.9, a template with the same specifications is used to create the PSD file. Creating a PSD file this way ensures that the file is optimized for your project. By default, the File > New > Photoshop File command in Adobe Premiere Elements places the new file in the Project view of Adobe Premiere Elements.
Having Adobe Premiere Elements manage the production of a still image in Photoshop Elements also eliminates any distortion during the video encoding of the image. Adobe Premiere Elements saves the image, properly scaled for display in video.
Once you create and save the file using Adobe Premiere Elements, you can go back to Photoshop Elements to edit the file. When you save and close the file in Photoshop Elements, it is automatically updated in Adobe Premiere Elements. You can also edit the file by using the Edit Original command in Adobe Premiere Elements.
