Does the XACTI have modes of capture in it? I mean, I see that there is one version of the camera that can capture a Full HD AVCHD, that is 1920x1080 AVCHD format mp4. The same one can capture a lesser resolution. So if your camera has a "non-Full-HD" capture resolution, there is a good chance it will not be understood by Premiere Elements. Can you let me know the resolution of the files that are generated out of the camera? Resolution is the "width x height", like a "1920x1080" or a "1280x720"
You also mentioned that "...and each time I attempt to drop a clip into my project I'm told that the file doesn't match the pre-set". What option do you select when you get such a message? I think you are selecting a "No" here, Otherwise Premiere Elements would have taken you to the right preset all by itself. In fact the message "means" that
1. This is not the right preset
AND
2. Premiere Elements 9 "knows" what is...
I think it this is called a mismatched preset dialog. Allow it to do its stuff, and you should see no red line in the resulting project over your clip!
