Moving this discussion to the Premiere Elements forum.
Is this camcorder video?
If so, what model of camcorder is this video coming from and what resolution is it? How did you get it from your camcorder to your computer?
Version 9 doesn't work well with many MPEG2 files. However, it does work with well video from from HDV (tape based high-def camcorders). Versions 11 and 12 work much better with other MPEG formats.
I do not believe that your question boils down to a comparison of how Premiere Elements 9.0/9.0.1 handles the MPEG2 compression as compared to Premiere Elements 11 or 12. (By the way, I find no problems with the way that version 9.0/9.0.1 works with MPEG2 compression.)
What I am reading is that you want to know a way to get Content and MPEG2 activation on a computer that is not connected to the Internet.
Do you have a Content disc that came with box packaging of version 9? If so, install that Content from the Content disc. Until proven otherwise, you do not need to be connected to the Internet for that. If you do not have a Content disc, then download the Content from Adobe to your computer that does have an Internet connection. Transfer the installation files to a USB Flash Drive to insert into the computer without the Internet connection.
You should be running version 9 as the 9.0.1 Update. Here again, download the 9.0.1 Update to the computer with the Internet connect and use the USB Flash Drive route to install the 9.0.1 Update on the computer without the Internet connection.
As for the MPEG2 Activation....there are probably more than just the MPEG2 Activation that is needed. Typically this is on a one time basis once you have an Internet connection. So, at some point you are going to have to connect to the Internet. And, you probably do not have QuickTime installed on your computer without the Internet connectio. If that is the case, you will not have any of the QuickTime presets among other things. I am assuming that you can download the QuickTime installation files to the computer with the Internet connection and use the USB Flash Drive route to get QuickTIme installed on the computer than you are opting to run without an Internet connection.
Is there no way that you can temporarily connect to the Internet to get the job done?