Moving this discussion to the Premiere Elements forum.
BK_Frankfurt what version of the driver are you currently using? Have you checked with the manufacturer to confirm you are using the current version? Please also make sure that your computer meets or exceeds the system requirements listed at http://www.adobe.com/products/premiere-elements/tech-specs.html.
For Windows, do NOT rely on Windows Update to have current driver information
-you need to go direct to the vendor web site and check updates for yourself
ATI Driver Autodetect http://support.amd.com/en-us/download/auto-detect-tool
IF you have a laptop with dual video, read below
Dual video problems (some for Premiere Pro, but the idea is the same)
-link to why http://forums.adobe.com/message/4685328
-HP Fingerprint/Password conflict http://forums.adobe.com/thread/911575
Also read Display driver & Baddriver http://forums.adobe.com/thread/1328594
From what you wrote you have a Intel HD Graphics video card, not ATI video card. Is that correct?
If you are getting display card error and your video card driver is up to date according to the manufacuturer of the video card, then next we delete the BadDrivers.txt file to see if that will resolve the issues described.
Is your Premiere Elements 12 running on Windows 7 64 bit, not 32 bit? If Windows 7 64 bit, then the path to the BadDrivers.txt file is:
Local Disk C
and in the Premiere Elements Folder is the BadDrivers.txt file sitting there outside some folders there. The BadDrivers.txt file for 12 is not in the folders there. It is a file in the Premiere Elements Folder.
In order to see the complete path cited above, you need to be working with Folder Option Show Hidden Files, Folders, and Drives with a check mark.
It is problem one where "it worked before but not now" for the video format that you are using now or "it never worked before".
In that context, have you switched to a new video format, and it is being used in this project.
If you open a new project, does the problem still exist.
We will be watching for your further details.