Hi, MaggieMoo77. Premiere Elements has its own forum and not many of us here use it. I'll move this over there for you.
What is PS10?
If that's Photoshop, you're still in the wrong forum.
If you're talking about Premiere Elements 10, Premiere Elements will not capture video over a USB connection. All capture must be done over a FireWire connection using a DV bridge, as described in this FAQ.
That Pinnacle device is best used with Pinnacle software.
Welcome to the forum.
As Steve says, Premiere Elements will ONLY Capture via FireWire (IEEE-1394a).
The Pinnacle hardware should have come with some version of Pinnacle Studio (maybe a stripped down version?), and that should work.
If at all possible, when using that sotfware to do the Capture, be sure to choose DV-AVI as the file format/CODEC. That material will Import perfectly into PrE, and edit smoothly.
Do NOT choose MPEG (any flavor), or AVI w/ any other CODEC, but DV/DVC, such as Xvid, or DivX. Those WILL create issues down the road.