Your camera is recording MotionJPEG.avi. The video compression of MotionJPEG can be highly problematic for Premiere Elements (any version). It is questionable if the video codec is missing or just not available to Premiere Elements.
In this type of situation, you have 3 possible choices
1. Use a utility that comes with the camera to provide the required codec
2. Download and install the Morgan MotionJPEG codec
3. Convert your MotionJPEG.avi into another format which will be compatible with Premiere Elements.
From what I have read of the camera's specifications, you could be recording 1280 x 720, 640 x 420, or 320 x 216, probably all at 24 progressive frames per second. Which is it?
If 640 x 420, then a possible format for consideration might be DV AVI.
More about all this when we receive more details from you.
The Premiere Elements 12 Help PDF is an excellent starting point in the Premiere Elements 12 learning curve.
But, never hesitate to ask your questions here and ask for clarification on anything written.
Looking forward to your progress.