Hi John,
I used photoshop elements to create the talk bubbles you can use premiere elements to create the bubbles but
I found that I could never get them to look right. After playing around with the shape tool in photoshop elements I found the talk bubbles set. There are 12 different talk bubbles and two thought bubbles.
MakingBubbles.jpg
AFter you've added a shape delete the background layer so that you have transparency save this as a psd but
don't bring the file into premiere elements as a media item. Instead, create a new title and Import image inside the title by using the add image button.
MakingBubblesAddImage.jpg
Now you can position and size the bubble where you you want and you even add styles to the bubble to be consistent with the overall look of your movie. I prefer to add my text at this point because it makes it easier to edit if you change your mind.
Animating the bubbles is pretty easy for most of them I simply increased the size by 10% and back down again over the space of a few frames.
Also the bubble noise is the finishing touch. Took me a while to find a good sound. There's a couple of good ones here.
http://www.soundsnap.com/search/audio/bubble/scoreLet me know if you have anymore questions.
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