Adobe Premiere Elements failing to Export

[ColddFire]

I just finished a new AMV using AP Elements. First time using this version of Premiere. So I exported the video as an MPEG-1. It had the largest compression and I wanted to see what kind of quality it would give me. It exported fine and came out with <i>ok</i> quality, but there's a bit of interlacing in it that I want to get rid of some how.

So I tried exporting it to something with a higher quality such as an MPEG-2. And in the middle of exporting Premiere had an error saying something along the lines that Windows could not return the video, or something like that. I haven't deleted any of my source video, and it renders and runs just fine in Premiere itself.

So my question is two fold. A) How do I fix this issue so that I can properly export my video, and 2) How do I deal with interlacing again. It's been well over a year, year and a half since I last made a music video and I can't seem to remember how(I don't remember ever being successful at it either) I have VDub, mpeg-vcr, and a lot of other software that was recommended to me when I first made AMV's.

[GloryQuestor]

First, which version of APE are you using?