What is PS10?
If that's Photoshop, you're still in the wrong forum.
If you're talking about Premiere Elements 10, Premiere Elements will not capture video over a USB connection. All capture must be done over a FireWire connection using a DV bridge, as described in this FAQ.
That Pinnacle device is best used with Pinnacle software.
Welcome to the forum.
As Steve says, Premiere Elements will ONLY Capture via FireWire (IEEE-1394a).
The Pinnacle hardware should have come with some version of Pinnacle Studio (maybe a stripped down version?), and that should work.
If at all possible, when using that sotfware to do the Capture, be sure to choose DV-AVI as the file format/CODEC. That material will Import perfectly into PrE, and edit smoothly.
Do NOT choose MPEG (any flavor), or AVI w/ any other CODEC, but DV/DVC, such as Xvid, or DivX. Those WILL create issues down the road.