You should post this in the PS Elements forum at http://forums.adobe.com/community/photoshop_elements
Check the image size in pixels. A normal picture will be around 3000 x 2000 pixels. You may be opening a thumbnail version.
Thank you, I will post it there. I'm not sure what has changed as I have uploaded and edited hundreds of photos without a hitch. I did resize the photo and that helped. Thanks for the response.