What model of camcorder is your video coming from and what format and resolution is it?
Did you use Premiere Elements to get the video from your camcorder to your computer?
Have you ensured that Premiere Elements project setttings match your video? If your video matches your project settings, there will NOT be red lines above your video clips in Timeline mode. Is this the case in your project?
The video is a downloaded file on my computer.
I'm sorry. That doesn't tell me nearly enough to help you.
If you don't know where the file came from, you can open it in Media Info or G Spot and post its resolution, frame rate and audio and video codecs.
But we do need all of the information we ask for in order to be able to help you.
Codec & Format information, with 2 links inside to read
-read both links in reply #1 http://forums.adobe.com/thread/1270588
Report back with the codec details of your file, use the programs below... A screen shot works well to SHOW people what you are doing