1) This is the Premiere Pro forum. You want the Premiere Elements forum:
2) If there is audio on a track between the clips which have the gap, you can't use the delete and close gap feature. You have to delete manually.
Moving to the Premiere Elements forum.
In order for Delete and Close Gap to work, you must have a true gap. In other words, there can not be video or audio on another parallel track. You must have a gap that goes through all of the tracks on your timeline.
If there is, say, an audio clip on the Soundtrack track and you try to Delete and Close Gap from the Video 1 track above it, the program will delete the clip but not fill the gap because the gap is not on all of the tracks.