Hauppage video uses some non-standard codecs that Premiere Elements finds very difficult to work with. With those types of capture cards, it's often best to edit only with the software that comes included with the capture card.
That makes sense. Shame the editing software that comes with it is so poor. Do you know of other capture cards that will be more compatible with Adobe PE11?
The Grass Valley/Canopus AVDC is an excellent capture device that produces video that is 100% compatible with Premiere Elements (and virtually all PC-based video editors).
You can connect an analog camcorder, DVD or VHS player or practically any other device to it and it will digitze the video.
Welcome to the forum.
You might also want to go to the forum's main page, and at "Ask a Question" query box, type in "Hauppauge" (without the quotation marks), and then look down at the bottom of that list for "See More Results." You should then get to a list, sort of like this: http://forums.adobe.com/community/search.jspa?peopleEnabled=true&userID=&spotlight=false&c ontainerType=14&container=3271&rankBy=date&q=Hauppauge
There are many threads on those cards, with a few "fixes," and also recommendations for other devices.