You can edit sequences individually in smaller projects then share them to a common format. Those individual files can then be brought into a new project timeline.
Or if you have a large project and just want to share a few sequences for later compilation, you can use the Work Area Bar to highlight one sequence at a time, export using the share work area bar checkbox, reset the WAB to the next sequence, and so on.
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If this post or another user's post resolves the original issue, please mark the posts as correct and/or helpful accordingly. This helps other users with similar trouble get answers to their questions quicker. Thanks.
Welcome to the forum.
I use the workflow outlined by Neale, above. One consideration is the format and CODEC to use for those intermediate files (DI's - for Digital Intermediates). If one will be doing additional editing, and they want the ultimate quality (at the expense of larger files), this article will offer some tips: http://forums.adobe.com/thread/875797?tstart=0
Please review and consider the principles and how to in the following blog post which appears to address your question regarding "compiling from cut sequences".
If you should have any questions or need clarification on this, please do not hesitate to ask.
But, it is important that you state the version of Premiere Elements that you are using and the computer operating system on which it is running so that we can customize our responses at the version specific level.