Moving to the Premiere Elements forum
Were you trying to Capture for this camera?
If so, you need to pass on Capture, and then use a card reader, or a USB connection to the camera, and Copy the full folder structure from the SD card, to the computer. At that point, you can Import the files to an appropriate Project.
Capture is ONLY from a miniDV tape camera.
When you do use Windows Explorer (or Mac Finder, I think... I don't have a Mac... and you did not say) to copy the files from the camera to your hard drive, do as it says in http://forums.adobe.com/thread/1015001?tstart=0 so you don't lose the metadata
Also, Hunt's article on how to design your project http://forums.adobe.com/thread/919388?tstart=0 so you stay organized
Better yet, connect your camcorder to Premiere Elements by USB and use Get Media/From Flip AVCHD Camera to open the Video Importer. That's what it's designed for.
And make sure you've set up your project to match your video specs! You should ideally be shooting in 1920x1080 AVCHD stereo and setting up your Premiere Elements project to match those specs.