What computer operating system is your Premiere Elements 12 running on?
In versions of Premiere Elements earlier than 12, the answer for that type of "No disc" message was usually related to SmartSound/Sonicfire Pro 5 feature. But, there is no SmartSound/SonicfirePro 5 feature in version 12, only Music Scores without the SmartSound name.
Consequently, I would suggest an uninstall, do a ccleaner run through (regular cleaner and registry cleaner parts), reinstall.
We will be watching for the results.
Running Win 8.1 Pro
Thanks for the computer information.
Any recent E drive with recent plugging in of removable drive(s)?
Have you had a chance to determine if the uninstall, ccleaner run through, and reinstall will work for you to get rid of that no disc error message? (Details in post 1).