I need some advice on how to create a "movie"-like slideshow of pictures (with music). I have tried the option in Photoshop Elements but it degrades the images badly. Any other suggestions of good software (that wont break the bank).
There is an option in Lightroom to create a slide show. You can use a sound track as well. You can download a trial version and try. There is a Lightroom 3 Beta available as well. You can try that.
Best Bang for the buck is ProShow Gold-- imho
Just did a 440 slide show with music for a PSA exhibition and it was not hard at all
The program gives you many different export formats and the customization of title slides,captioning and transitions is top notch.
Unless the slideshow is just for personal use, be careful that the program outputs a format that does not need special software to play the program. PDF slideshows and powerpoint presentations are pretty safe as most people have Adobe Acrobat for the PDF show or PowerPoint Viewer (they're free). However the best is to output to one of the video standards as almost any computer will have a player for the various video standards.