Always important to give the Premiere Elements version and the computer operating system on which it is running.
For now, I will assume that you are using Premiere Elements 12 on Windows 7, 8, or 8.1 64 bit computer.
What video card/graphics card does your computer use? And does it use 1 or 2 cards? If 2, more discussion on that.
Have you gone to the web site of the manufacturer of the card and confirmed that the card's driver is up to date? If you have
and your card driver is up to date, then delete the BadDrivers.txt file.
Still with the assumption that you are using Premiere Elements 12 on Windows 7, 8, or 8.1 64 bit, the path to the
Local Disk C
in the Premiere Elements Folder is the BadDrivers.txt file that you delete. That BadDrivers.txt file can be in the Premiere Elements Folder surrounded by folders. You want only the BadDrivers.txt file in the Premiere Elements Folder and not any of the folders in the Premiere Elements Folder.
Be sure to be working with Folder Option Show Hidden Files, Folders, and Drives active so that you can see the complete path cited.
(Once you open a Premiere Elements project, a new BadDrivers.txt file will be generated by the program, but hopefully the problem will be gone.)
Please consider and then let us know if any of that worked for you.