imxcam
First, I suspect that you do not realize that you are not communicating with Adobe here. Rather user to user. That the way this forum works.
If you purchased Adobe Premiere Elements 12 from Adobe and you are within 30 days of purchase, you can contact Adobe via its Adobe Chat to work out the details of a refund. If you purchased Adobe Premiere Elements 12 from an authorized reseller then to contact that reseller to determine it own return policy.
I will gladly try to figure this out to determine what is going on. I will work through your details to see if I can reproduce the same results that you are reporting.
To do that, I need
1. The project preset that has been established for your Premiere Elements project
a. Edit Menu/Project Settings/General and the readings for Editing Mode, Timebase, Frame Size, Pixel Aspect Ratio even if the fields look grayed out.
b. You tell me that video one is 640 x 480. Does that have a frame rate of 29.97/30 progressive frames per second?
c. You tell me that video two is 1920 x 1080. What is the frame rate as well as interlaced or progressive?
d. Facebook Preset - PAL SD. I am OK with that.
The answers will be in your details.
Please let us know which way you want to go on this - help from us in this forum or you contacting Adobe about a refund?
We will be watching for your decision.
ATR
Add On...what were the export choices and settings that you used to take your Timeline to a file saved to the computer hard drive, followed by upload of that file to Facebook?