The Premiere Elements Information FAQ http://forums.adobe.com/thread/1042180 lists the information you need to supply when asking a question
What is your exact brand/model graphics adapter (ATI or nVidia or ???)
What is your exact graphics adapter driver version?
Have you gone to the vendor web site to check for a newer driver?
For Windows, do NOT rely on Windows Update to have current driver information
-you need to go direct to the vendor web site and check updates for yourself
ATI Driver Autodetect http://support.amd.com/en-us/download/auto-detect-tool
nVidia Driver Downloads http://www.nvidia.com/Download/index.aspx?lang=en-us
Display driver & Baddriver http://forums.adobe.com/thread/1370916?tstart=0 may also help
What version of Premiere Elements do you have and on what computer operating system is it running? For now assuming some version of Windows.
Have you assured that your video card/graphics card is up to date according to the web site of the manufacturer of that video card/graphics card?
If so, have you attempted to delete the BadDrivers.txt file?
Windows 7, 8, or 8.1 64 bit path to it is
Local Disk C
XX.X (XX.X = version number if version 4, 7, 8, 9, 10, or 11)
in that XX.X Folder is the BadDrivers.text file that you delete. Make sure that you are working with Folder Option Show Hidden Files, Folders, and Drives active so that you can see the complete path cited.
If you have Premiere Elements 12, then stop in the sequence of Folders at the Premiere Elements Folder and look in it for a file named BadDrivers.txt file.
Unless you have 2 instead of 1 video card, the above should correct the situation.
Please let us know the outcome. Answers will be in the details.