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Unfortunately, no version of Premiere Elements supports AVCHD Lite, Tony. Certainly not version 3.
Though, as we always say, your mileage may vary. So it's possible someone might be able to get it to work with the right configuration. I just wouldn't expect it to work on all computers consistently.
Many thanks for the information. I had not run across anyone before claiming to get AVCHD or AVCHD-Lite to work in Premiere Elements 3.0.2. So, the post in question really had me thinking "there is something wrong with this picture".
I will try to get more information from the user to determine what "break through" the user has made versus something else.
I wouldn't say that "no version of Premiere Elements supports AVCHD Lite" without qualifying what you mean by support. Pre8 is able to import clips in this format, but it will not export in that format or create AVCHD DVDs in this format. But one is fully able (if patient) to edit and downconvert to standard DVD, or export in 720p HDV format.
That's encouraging news, Eric. So version 8 apparently does support AVCHD Lite!