You need to read the Announcement at the top of this forum regarding the recent issue of the 1/2 wmv displayed related to a recent Windows Update.
There have been several threads on that matter as well, for example,
Please let us know if that resolved your issue.
The problem you are having is not a PrE problem per se. Rather it is the unintended result of one of a series of MicroSoft updates released on July 9, 2013.
Please go back to the main listing of posts for this forum and refer to the "ANNOUNCEMENT" heading at the top. http://forums.adobe.com/community/premiere_elements?view=discussions# Specifically announcement #1 describes the problem and the corrective action for now --until MS releases an updated patch.
PLEASE NOTE: DO NOT take the over zealous action of doing a 'System Restore' or 'rollback' to a time before the updates were applied. It is only necessary to UNINSTALL the one particular update for your specific operating system.
Thanks for the help. It's back working.
Great news. Glad my comments and those of oldevhs were of assistance to you in resolving the problem.
Thanks for the follow up.