Photoshop Elements 10 is compatible with versions of Camera Raw up to and including version 6.7. You will either have to upgrade, or use the free DNG converter provided by Adobe.
Try updating Camera Raw to the latest version (I think 8.7).
It isn't compatible with Photoshop Elements 10. PSE 10 can only use Camera Raw up to version 6.7. Newer versions are not compatible and will not install or work.