How do I fix this ? The program will not continue untill i pick a category , and it will not let me select a category .
First try deleting the prefs: quit the editor (quit PSE in older mac versions) then restart it while holding down ctrl+shift+option (command+shift+option on a mac). Keep the keys down till you see a window asking if you want to delete the settings file. You do.
If that doesn't work, which version of PSE and which operating system?
You need to delete the file mediaDatabcse.db3. Go to [your hard drive]>Library> Application Support>Adobe>Photoshop Elements>10.0>Locale> en_US (or your location).
The next time you start PSE wait to give it time to rebuild this dbase. Don't use the program till all the icons reappear in the effects panel.
North America
Europe, Middle East and Africa
Asia Pacific