Welcome to the forum.
Depending on the specs. of your computer, and on the specs. of the HD files that you Import, then yes - that is what PrE does - edit video.
Can you give us the specs. of the files that you will be using? Just knowing which make/model of camera, and its settings, will be very useful.
Then, can you give us the specs. of your computer?
You will want to choose a Project Preset (at New Project), that matches your Source Footage (the files to be Imported) 100%. When you Import those Source Files, and drag them to the Timeline, you will have no red lines above them, until you add Stabilization, or other Effects, or overlays, such as Titles, PiP (Picture in Picture) or Transitions. Then, you will probably want to hit Enter/Return, to Render the Timeline, for smoothest playback.
When done with the editing, just go to Create Menus, and add a BD (Blue-ray Disc) Menu Set, Chapter Markers, Menu Markers, etc., and go to Share, choosing Blu-ray Disc.
Good luck, and happy editing,
My camera is a Canon 1D M4 shooting 60fps @1280x720p. This generates tons of data.
My system has Intel i7 firstname.lastname@example.orgGHz 12 GB RAM, Windows 7 Home Premium 64bit.
I've never before tried any project utilizing this much data. In Photoshop CS4 I built some large panorama files with many layers but nothing like this.
If you have adequate HDD space, that material should not be too taxing on the system that you describe.
Just make sure to choose the proper Project Preset for that footage, at New Project. Check out Steve's Basic Training Series, as he covers that aspect in great detail.
Good luck, and happy editing.