Hard to say exactly what's going wrong when we don't know exactly what you're doing, Paradox.
I'm not sure what you mean by "clips on a solid bankground are prompted to add the effect, which it is not telling me." You can also manually apply Videomerge by selecting it in the Effects panel or by right-clicking on the clip and selecting the Videomerge option.
Are you putting your clip that you want to remove the background from on Video 2 and the new background on Video 1, directly below it on the timeline?
Again, any details -- or even better a screen capture image -- can help us help you.
Sorry about the vague description. I'll try to describe it the best I can. The clip I was referring to is a pre created muzzle flash video on a black background, which of course I'm trying to remove the black background from. My main video is on Video 1, the muzzle flash being on Video 2, making Video 1 the new background. I have tried manually applying the Videomerge effect, but still no luck. I also tried using another Jpeg image of a muzzle flash, on a black background, which didnt work either, even after appplying the effect.
Usually, Premiere Elements automatically detects if a video or picture is on a solid background color, and a box appears asking if I want to apply the videomerge effect automatically. This didn't appear for either footage that I used.
I don't understand why it isn't working now, especially since the videomerge effect has worked perfectly for me in the past. Is it because its on a black background?
Hopefully this helps.
I wonder if the ChromaKey Effect will get you what you want. Just Key out the black, and test.
With a little tweaking, the ChromaKey effect did end up working, thanks for the help!
Premiere often offers several ways to do something. Depending on the Source Footage, and also on what one wants to do, another workflow might yield better results.
Good luck and happy editing,