What you are encountering is the 1/2 wmv display related to a recent Windows Update kb. That kb needs to be deleted.
Please check the Announcement at the top of this Premiere Elements Forum. This has been a "hot" topic for a while now. Lots of threads on the matter.
For your convenience, this is what you should find in the Announcement at the top of this forum.
Announcement: Windows Update Causes Display to Be Blacked Out
MicroSoft has issued an Update for Windows, that is causing problems with Displays. The following is from Talbot McInnis, who tracked down this problem, and offers a fix:
"MS bulliten MS13-057. Specifically, on XP kb2834904 and on windows 7 kb2803821 is causing a problem
For us, it occurs when decoding WMV9 files. Not all uses of WMV decoding are affected, but I confirmed that when connecting the WMV decode DLL to a sample grabber for RGB32 video, the frames arrive black on top, so that points directly to decoding internals of the WMV Decode dll.
You can uninstall these windows updates to resolve your problem."
There are several threads on the problem that this Update is causing on the PrE and PrPro Forums, so one can get more details. So far, there is not another fix from either MS, or Adobe.
Also, see this Adobe KB Article: http://helpx.adobe.com/premiere-pro/kb/wmv-files-corrupted-import-or.h tml
by Bill Hunt (Jul 12, 2013)
Helpful advice given in the many threads here on this include:
a. For now, set up Windows Updates so that you require notification before any downloading and installing of them.
b. If you catch the offending one in the waiting Windows Updates Important Updates, right click it and select Hide. That is supposed to keep it from coming back.