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
Dual video problems (some for Premiere Pro, but the idea is the same)
Go to the Windows Control Panel and select Hardware and Sound and then select Device Manager... In Device manager you click the + sign to the left of Display Adapters... and see if 2 are listed
IF YES, read below
-link to why http://forums.adobe.com/message/4685328
-HP Fingerprint/Password conflict http://forums.adobe.com/thread/911575
If you are sure that your video card/graphics card driver is up to date according to the web site of the manufacturer of the card and if your computer uses only 1 video card/graphics card, then please delete the BadDrivers.txt file. In Windows 7 64 bit, it is found in the path of
Local Disk C
and in the Premiere Elements Folder is the BadDrivers.txt file that you delete. That Premiere Elements Folder in the path also contains folders. All you want in this Premiere Elements Folder is the BadDrivers.txt file and nothing in those folders in this Premiere Elements Folder. When you open a new Premiere Elements project, the program will generate a new BadDrivers.txt file and hopefully the issue will be gone. Be sure to be working with Folder Option Show Hidden Files, Folders, and Drives active so that you can see the complete path cited.
The rationale behind the BadDrivers.txt file deletion goes back to the days of Premiere Elements 9.0/9.0.1 See post 10 in the following older thread.
This technique has been a life saver to many in versions of Premiere Elements more than just 9.
Please let us know the outcome.