Hi,
Could you create a new project and then bring in the .VOB file into Premiere Elements 13 timeline? Go to the export room and then check if you see a orange line above the clip (on the timeline). If you still do, can you right click on the clip on the timeline and then select "Show Properties". Let us know what you see in the resulting window.
If you do not, you can now look at the monitor and see if you see the video without borders on the sides or on the top or bottom.
Regards,
Premiere Elements Team