If you performed the backup using the PSE Organizer command File->Backup Catalog, then you don't specifically need to put the photos anywhere on the new computer. This is all taken care of by the PSE Organizer command File->Restore Catalog on the new computer. You can choose to put the photos anywhere you want when you use the Restore Catalog command, and all will be well. More details are here: http://helpx.adobe.com/photoshop-elements/kb/backup-restore-move-catalog-photoshop.html, scroll down to the section that says Restore your catalog to the new computer
I had a very similar question to the one that sydhsydh posted. However, in my case I am moving from a PC to Mac.
I did use the File->Backup option within PSE on my PC. However, prior to attempting to restore the Catalog within the PSE Organizer on my Mac, I manually moved over all of the folders and pictures that were on my PC. My assumption is that BEFORE I tried to restore the catalog on my Mac, that all of the original folders and pictures needed to be on my Mac.
Under the "Pictures" folder on my Mac I created another folder called "My Pictures." Under that folder I have the full contents of what previously existed under the "My Pictures" folder on my PC.
Similar to what Sydhsydh posted, I didn't believe the catalog restore option would move over the actual folders and pictures that existed under "My Pictures" on my PC.
I am now at the point where I am trying to restore the backup on my Mac and don't know what to specify as the destination folder. I was afraid of selecting the "My Pictures" folder that I manually created (and which includes all the pictures and folders I moved over on my own) for fear that this would duplicate everything I had previously moved over.
Should I delete the contents of the "My Pictures" folder and then restore the catalog backup within the PSE Organizer to avoid duplicating the pictures? Or should I leave those files and folders as they are and use a different place to restore my catalog within the Organizer?