What version of Premiere Elements and on what computer operating system is it running?
I run into a similar situation on Windows 8.1 64 bit that came with a built in microphone and Premiere Elements 13.
In the Narration Dialog that opens after Tools Menu/Narration, move the Mic Sensitivity slider all the way to the left and
then move forward with your narration recording steps.
Please let us know if that worked for you since problems with the same symptoms can (often do) have different causes.
Looking forward to your results.
Add On...is the microphone USB type or one that plugs into a computer jack?
I am using Windows 8.1 and Premiere 13. That did help to move the slider all the way to the left and also muting my computer mic seems to help too. But there is still an odd echo type sound. I tried to add music too while I narrate but the music seems too loud and distracting. Is there a way to turn it down while I narrate?
"Add On...is the microphone USB type or one that plugs into a computer jack?"
I just saw this - I don't know where my mic is on my computer. It is built in.
I fixed the problem by going into my computer settings for the mic. It was turn up to 100%. I turned it down to 50% and it seems to be much better! I would still like to add some music too if that can be turned way down.
Great job on the narration improvements.
If it is just a matter of volume adjusts on your audio files, please check out
Volume panel expanded
There is also an orange line that runs horizontally across the duration of the audio clip (called rubberband). When Volume:Level is in the header/title of the Timeline audio clip,
you can move that rubberband up or down to adjust the volume.
Also, explore Tools Menu/Audio Mixer.
And, when evaluating sound, please work with the Audio Meters on (See Window Menu/Audio Meters).
Please review the following Adobe document
Also, explore Audio Gain/Normalize. See Clip Menu/Audio Options/
After reviewing all of the above, please let us know you have further questions on this.