That format is dropped PSE11 onwards. However, you can get it to work (if you have a previous version of PSE, else, try opening EPS as TIFF) through ukgaurav's response on the thread- http://forums.adobe.com/message/4950368
Try this to open the EPS file in PSE:
1) Click File->Open As
2) Choose your EPS file
3) Choose Tiff from file format dropdown
4) Click Ok.
For more ways on how to open more formats please browse my reply at other forum post http://forums.adobe.com/message/4920543#4920543#4920543
Hope it helps.