Where did your audio file come from?
What format is it?
What happens if you plan the file in the free download Audacity?
Welcome to the forum.
Along with Steve's questions, which Audio Track did you drag the Clip to?
Do you get Audio, from a known good file, such as one of your system's WAV file?
This article goes into some general Audio settings: http://forums.adobe.com/message/3887210#3887210
Sorry if i dont answer your first question propelly but the music was from 'my music' on my computer.
The format is MP3.
I played it in Audacity and there are green bars moving at the top.
The track is at the bottom of my project on the timeline where it says 'soundtrack'
Well the audio is an actuall song and its MP3. I dont really know how to answer the question, sorry im not good with electronics.
After opening it in Audacity, go to the File menu and select Export As... a WAV.
This WAV will work perfectly in Premiere Elements.
MP3's can function perfectly, but many can cause problems. Per Steve's suggestions, also see this article for handling problematic MP3's: http://forums.adobe.com/message/4146900#4146900
Also, though they work most of the time, some users have experienced issues with the two Fixed Audio Tracks: Narration and Soundtrack. It seems to be a Project-specific problem, when it does occur, and most of those users have done Projects, where there are no issues - but, when they do arise, the "fix" has usually been to Move the problem Clips from Narration, or Soundtrack, to one of the regular Audio Tracks, that is empty. It might be necessary to create a new Audio Track, if you do not have any empty ones, in your Project.