[Moved to Premiere Elements forum.]
What computer operating system is your Premiere Elements 12 running on?
Probably more important, what are the properties of what you imported into the program and which is giving you the red video at playback in the Edit area monitor? We are looking for brand/model/settings for the camera that recorded the video. Do you get this same red playback with other video formats as well as with jpeg photos?
Let us start here and then decide what next.