I'm using Premier 1.5 to make mpegs and Encore 1.5 for Authoring. What are the correct mpeg setting in Premier to make PAL Assets. I'm converting AVIs. I've tried a bunch but everyone of them looks Ragged and Stuttery. Hope you can help ASAP.
Converting the NTSC avi to PAL in Premiere will look horrible...more less how you are describing, since it is doing a poor job of scaling and changing the framerate.
Your best bet is to use a stand alone transcoder like Canopus Procoder (which does an excellent job of format conversions) since it will do a better job. Procoder isn't cheap, but is probably money well spent in terms of it's quality and capabilities.
Another option is to find a tape dub house around that will do the format conversion with a professional hardware format converter. This can get pretty costly.
The other thing to consider, is whether you really need a format conversion. A many DVD players sold in Europe will play both formats and do the conversion for you.
One more question: Are you "converting" PAL .avi files from PAL .avi to PAL .mpeg, or are you "converting" PAL/NTSC .avi files to NTSC/PAL .mpeg files? Encore will not convert PAL --> NTSC or vice-versa.