When you started your Premiere Elements project, which project settings did you select?
If you selected the correct project settings for Everio footage there will NOT be a red line above your clips when you add them to your timeline. Is that the case in your project?
Have you tried rendering your project (press Enter) before you play back your video? When you render, this red line will turn green and you should see smoother playback (althoug this is no substitute for having the correct project settings).