I would not recommend using a WMV as your source file. Not all of them work -- and the few that do don't work well.
I'd recommend you use Windows MovieMaker 2.6 (downloadable from the Microsoft site) to conver the file to a DV-AVI and use that in Premiere Elements. Then your problems will all go away.
I created the file using Windows Live Movie Maker which came with my system. Before I purchased Adobe Premiere Elements 10 I called Adobe and they told me that it would convert my Windows Live Movie Maker files into an MP4. I really NEED to convert these files into MP4 files. Any suggestions?
If all you're trying to do is convert your files, I'd check out the Aunsoft Video Converter. It can convert almost anything to almost anything with excellent results. It costs I think $39.
A free alternative is Super Video Converter, which also converts a wide variety of formats, though it's not quite as intuitive as the Aunsoft product.
What do you plan to do with your MP4s, by the way? There are dozens of MP4 types, qualities and resolutions, depending on whether you plan to send the files to a portable device, like an iPad or iPod, to a smartphone, to a web site or to another video program for further editing. There really is no such thing as a one-size-fits-all MP4. Premiere Elements alone has a couple dozen MP4 output options.
In other words, you could have save yourself a lot of trouble and had a lot more options if you'd have edited your video in Premiere Elements in the first place.
Thanks for your great insight. I am so comfortable with using Windows LIve Movie Maker that I did not event think to just load my movies from my camera into Premier Elements. I literally just received my PE in the mail, so I need to take some time to learn it. At first glance it seems wayy to complicated to do all the tricks I can do in WLMM. I convert movies into MP4s that people can use on websites, emails, etc.
I will try uploading my files from my camera straight into PE next time. Again, thanks so much for your insight. I will take a few tutorial on learning PE.
>tutorial on learning PE
Here are some links I've saved
Saving & Sharing http://forums.adobe.com/thread/1051093
Steve's Basic Training Tutorials... steps are the same for several versions
Right click PDF link in the upper right corner and select to save to your hard drive
-the page also has links to help pages for previous versions