If its only a few photo’s just drop them in the timeline (dont touch the par). You might want to rightclick on the photo in the timeline and set scale to framesize, or go to scale in the effects controle and scale the photo’s to your liking.
May i ask what it is for, because if you want to send a dvd to Europe leave it in ntsc. Ntsc is of lesser quality than pal, and almost all dvd players can play ntsc.
The clip-effect was dropped from CS3. You can make a rectangle a bit larger than the small clip in the titler and drop it behind the small clip on the timeline.