There is only an import screen menu when connecting a Sony DVMC-DA1 media converter in Premiere 12. (Windows 7 Pro 32, HP Core Duo meets 12 specs) Importing into 12 works fine. However I do not get a playback menu and can't view video from the timeline through the Sony DVMC-DA1 Media Converter to the external DVD recorder or a monitor. The Sony DVMC-DA1 Media Converter works fine in both directions with Premiere 6.5 in XP on a Media Center HP. I like 12 and have successfully created DVDs on the internal burner. By the way, the Elements programs I just purchased and installed this week do not show up as registered. Thanks for your help.
Try capturing your video through a program like WinDV ( a free download). The DV-AVIs you capture through it will work perfectly in Premiere Elements.
Otherwise, if you're determined to capture through Premiere Elements, ensure that you have the latest version of Quicktime and go to the ATI or nVidia site to ensure that you have the latest driver for your graphics card. I don't know if it will address issues specific to your capture device, but it does usually fix issues like this.