What version of Premiere Elements and what computer operating system is involved?
Premiere Elements should be installed to the default Local Disk C location. It is not impossible to install to another drive on the computer but that is typically associated with problems. And, there are those components of the install which will go automatically to certain locations no matter where you want to put them.
Please consider installing the Premiere Elements program files to the default Local Disk C location. But, directing all else to an external hard drive with lots of free space
a. for scratch discs (see Edit Menu/Preferences/Scratch Discs)
b. video storage
Is the laptop's 32 GB storage space because the laptop is overloaded and needs major clean up or because hard disc capacity of that computer is very low?
Computer resource, hard drive space, installed and available RAM are going to become very critical to success especially for HD projects and larger projects.
Any questions or need clarification, please do not hesitate to ask.