Photoshop Elements 11 freezes up and then continues to create 1000s and 1000s AND 1000s of tmp files in the same location as I was trying to save the jpg. Any ideas on what is going on?
Try resetting the PSE preferences by and check once.
1. Close Elements.
2. Launch the Photoshop Elements Welcome Screen and hold down ctrl + alt + shift as you click Edit.
3. Continue to hold the keys until you see a message box asking if you want to delete Photoshop Elements settings file; click Yes. Elements will open with default preferences.
GO to Edit->Preferences and you will see Reset Preferences on next launch
Click this button to ensure that all product preferences are reset to default settings when Elements Editor is restarted next. Available at Preferences > General.
Also try enhancing the performance with the tips - http://blogs.adobe.com/pselements/tips-to-enhance-photoshop-elements-p erformance/
In case you are opening and saving to any network location try copying it on your machine and try
Hope it helps.