What computer operating system is your Premiere Elements 9.0/9.0.1 running on - with version 9.0/9.01, it is a 32 bit application whether it is run on 32 or 64 bit computer. So, you will get that "too large" error message when your still total pixel count exceeds the limit.
If you go to Premiere Elements 10, 11, 12, or 13 (the current version) and you are running one of those programs on a 64 bit computer, each will be a 64 bit application and program will not throw off the "too large" error message. I have challenged these latter applications with stills 10000 x 7500, and each was imported with issue.
But, the question becomes, because you can, should you? No matter how high the resolution of the image, it will be forced into the resolution characteristic of the import. Just how much you can get away with in this regard goes to your computer resource and how many of these stills oversized for the project settings.
If you put Premiere Elements 13 on a Window 7 or 8 32 bit system, I am fairly confident that you end up with "too large" error message. That would not be the case if Premiere Elements 13 on a Windows 7 or 8 64 bit system.
Please review and consider. Any questions or need clarification, please do not hesitate to ask.
thanks! I did a work around by using windows movie maker and using the resulting video file of the pictures, importing it into Pre9. The problem was with JPGs created with CS5 from a Canon 60D. They were just a little to large for Pre9 but I did not want to have to go back and resize them. I do have Windows 7, 64 bit with an core i7.
Wonderful news. Great job developing a workaround for your situation.
The following is a link to some work that I did on Premiere Elements still max image size
Best wishes as you move forward with your video projects.