When you brought the file into your project, did you wait for it to fully conform before you began editing?
Try clearing/deleting the video file from your Project Assets and then reimport it into your project. Wait a few minutes for it to fully conform before you begin editing it. You can watch the progress in the lower right of the program's interface.
BTW, I'd be very concerned about a C drive with only 9 gigs of free space! That's a time bomb waiting to go off.
I'd never operate with less than 25-30 gigs of free space -- and I'm make sure to run Disk Cleanup and the Defragmenter regularly. 9 gigs is barely enough room for the operating system to breathe, let alone to open an intensive program like Premiere Elements.
Thank you. "Cleaning" the assets did the trick. I also freed up about 50GB on drive C:.
Great news, PolarBear!