My first GUESS is that you have pictures that are "overly" large, which will cause video editing problems
Photo Scaling for Video http://forums.adobe.com/thread/450798
-HiRes Pictures to DVD http://forums.adobe.com/thread/1187937?tstart=0
-PrEl Crash http://forums.adobe.com/thread/973935
The Elements Tutorial Links Page http://forums.adobe.com/thread/1275830 may also help... especially the links about importing video and project settings
Also, for the future, when you ask a question people generally need more information to be able to help
From the Premiere Elements Information FAQ http://forums.adobe.com/thread/1042180
•What version of Premiere Elements? Include the minor version number (e.g., Premiere Elements 9 with the 9.0.1 update).
•What operating system? This should include specific minor version numbers, like "Mac OSX v10.6.8"---not just "Mac"
•Are you using an account with Administrator Privileges?
Run as Administrator http://forums.adobe.com/thread/969395 (Encore + "All" Premiere)
•Have you installed any recent program or OS updates? (If not, you should. They fix a lot of problems.)
•What kind(s) of image file(s)? When talking about camera raw files, include the model of camera.
•If you are getting error message(s), what is the full text of the error message(s)?
•What were you doing when the problem occurred?
•What other software are you running?
•Tell us about your computer hardware. How much RAM is installed? How much free space is on your system (C:) drive?
•Has this ever worked before? If so, do you recall any changes you made to Premiere Elements, such as adding Plug-ins, brushes, etc.? Did you make any changes to your system, such as updating hardware, printers or drivers; or installing/uninstalling any programs?
And some other questions...
•What are you editing, and does your video have a red line over it BEFORE you do any work?
•Which version of Quicktime do you have installed?
What is your exact brand/model graphics adapter (ATI or nVidia or ???)
What is your exact graphics adapter driver version?
Have you gone to the vendor web site to check for a newer driver?
For Windows, do NOT rely on Windows Update to have current driver information
-you need to go direct to the vendor web site and check updates for yourself
ATI Driver Autodetect http://support.amd.com/en-us/download/auto-detect-tool
nVidia Driver Downloads http://www.nvidia.com/Download/index.aspx?lang=en-us
nVidia Driver Rollback PreElements-10 http://forums.adobe.com/thread/1317675
-Old Drivers http://www.nvidia.com/Download/Find.aspx?lang=en-us
Exactly what are you editing?
Codec & Format information, with 2 links inside for you to read http://forums.adobe.com/thread/1270588
Report back with the codec details of your file, use the programs below... A screen shot works well to SHOW people what you are doing
http://forums.adobe.com/thread/592070?tstart=30 for screen shot instructions
Free programs to get file information for PC/Mac http://mediaarea.net/en/MediaInfo/Download
When your project sequence is correct, you will not see a red line over your timeline at first import, before you do anything to the video
If you have a red line over the timeline after importing a video and before adding any effects... your project is wrong for your video