Making AVI videos


OK, I film using my Sony Handycam, that uses DVDs. I edit using Adobe Premiere, but it only lets me finish the film in WMV, which significantly decreases the quality. I try converting to AVI but the picture looks exactly he same. Is there a way  can edit it and save it as AVI
I pretty sure Adobe Premiere will encode straight to AVI using any ActiveX codecs you have installed.  DivX and Xvid both support this.

Are you using a full version of Premiere or a partially functional version you got with your camera or something?
is it some kind of light version ? .. The first program I tried for editing was Abobe Premiere but the divx/xvid export was buggy (so the picture was blocky) but I had the option to export it as avi
Please quote exactly the name of the product as it appears on the box (to see if it is a simplified version).

Also, the full version of Premiere (which I don't think you can buy on its own anymore but hey) would cost several hundred dollars.  Does this sound like what you bought?
Yeah, "Elements" is the simplified version.  It might not support more advanced output features.

It probably DOES support output to DV in an .avi container.  This will produce an enormous but relatively uncompressed video.  Then you can take this DV video and encode it into whatever using some free software.  I use StaxRip, which yields very high quality.