Hello, Milow White 63. Premiere Elements has its own forum and you'll get more help with video questions there. I'll move this for you.
What operating system are you using, how fast is your processor and how much do you have?
What model of camcorder is your video coming from and what format and resolution is it?
When you started your Premiere Elements project, which settings did you select? If you selected the optimal settings for your video format, there will be no red lines above your clips when you add them to your timeline. Is that the case in your project?
Along with Steve's questions, this article covers providing complete information on your system, as well: http://forums.adobe.com/message/2701956#2701956
There can be issues with the system, the Source Files, and the Project's Preset, that can cause "hanging," as you describe.
Good luck, and please let us know more.