what codec supports avi in Premiere Elements 12. The avi was created on a point and shoot
Your AVI needs to be created with the DV codec in order to be 100% editable in Premiere Elements.
You can see your video's codec by opening it in a program like G Spot or MediaInfo.
Adding to what Steve said, IF your camera codec is Motion JPEG aka MJPEG read below
- problems with Samsung codec http://forums.adobe.com/thread/699493
- and Fuji http://forums.adobe.com/thread/1015922
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