Which version of the program are you using and on which operating system? Have you ensured you have the latest version of Quicktime installed, per the program's requirements?
What are your project settings (as listed under the Edit menu)?
What resolution is the video you're bringing in from your camera?
Adobe Premier Elements 11 - Currently Using Mac OS X 10.9 - Maverick (Although I also tried it on the previous OS before Updating)
I have the latest quicktime.
General - Editing Mode: AVCHD 720p Square Pixel
Timebase: 29.97 frames/second
Video - Frame Size: 1280/720
Pixel aspect Ratio: Square Pixels (1.0)
Fields: No Fields (Progresive Scan)
Display Format: 30fps Drop-Frame Timecode
Title Safe Area: 20%/20%
Action Safe Area: 10%/10%
Video Rendering- File Format: I-Frame Only MPEG
Compressor: MPEG I Frame
Video Resolution is HD 1280/720
Codecs: H.264 Linear PCM
The video is in one section, I have not chopped it up, only adding titles and transitions at the beginning and the end, but the video turns red somewhere in the middle quite randomly. The sound however continues.
The video plays fine on the timeline, and the clip itself plays fine on quicktime before editing.
One thing that sticks out in those data is the HDV Project. HDV is for HD mini-DV tape-based footage, and not AVCHD footage, which is what you have.
This might not end up being useful to you, but another Mac-user on the Premiere Pro Forum, is having similar issues: http://forums.adobe.com/thread/1335329?tstart=0
I know that they are NOT using Premiere Elements, but instead PrPro CC, but the issue seems similar enough, that you might want to also watch that thread. So far, no one has responded over there.
Good luck, and wish that I had more to offer.
What you are seeing in Edit Menu/Project Settings/General is perfectly normal. So is the what you are seeing for Edit menu/Project Settings/Capture and Video Render there. So, I am not sure where Hunt is coming from with the HDV comment.
I have looked at a sample of video from your brand/model camera via a QuickTime export and do not see the problem that you describe. The sample video is
1280 x 720
29.97 frames per second
AVCHD video compression with a .mp4 file extension.
I used the Premiere Elements 11 project preset of NTSC AVCHD AVCHD LITE 720p30 which appears to be what you or the program selected as well.
Consider creating a new project with the same NTSC AVCHD AVCHD LITE 720p30 project preset and importing only a video clip. Do nothing to the video clip and export it to a H.264.mov file saved to the hard drive. Determine if the red areas appear in this video.
What did you do with the Bitrate Settings? Leave without check mark or with check mark and filled in bitrate in kbps (kilobits per second)?
We will be watching for your follow up. I will look at the DVD-VIDEO side of this later.