I have just installed Premiere Elements 12 on a new Toshiba with Intel i5 and windows 8. When I play a viedo through Elements the audio drops out after 30 seconds. When I play the same viedo through Windows audio does not drop out. I have an older HP with Intel i3 and Windows 7 running Premiere Elements 10 and I do not have any issues with the audio dropping out. This is the first time I have used this forum so I hopr I'm doing this properly. Thank you, Bob.
With a slower machine like that, it's possible you haven't given the program time to fully conform the audio and video in your file.
Clear the file from your Project Assets and re-add it to your project. Watch the progress along the bottom of the program and wait until it has completed its conforming before you start editing.