You have posted in the wrong forum since your program is Photoshop Elements 10 (photo editor). You have posted in the Adobe Premiere Elements Forum (video editing).
You can repost in the Adobe Photoshop Elements Forum or wait for a moderator to see your thread here and move it from here to there.
While all that is going on....
Camera Raw does not support the Nikon 1V2 raw image format until Camera Raw 7.3.
And it looks like Camera Raw 7.3 is not supported until Photoshop Elements 11.
The latest supported version of Camera Raw for Photoshop Elements 10 appears to be Camera Raw 6.7.
Camera Raw must support your camera and your Photoshop Elements needs to be supported by the Camera Raw version.
Your choices appear to be
a. Go from Photoshop Elements 10 to 11
b. Use the DNG converter
You can get further information if necessary after your thread gets transferred to Adobe Photoshop Elements Forum.
Please do not hesitate to ask if you have questions or need clarification.