This is about Premiere Pro, but it may help... Drive C space http://forums.adobe.com/thread/1007934?tstart=0 see reply 4 for the setting that you need to manually change... and then delete any old temp files
What version of Premiere Elements and what computer operating system is involved.
As far as I have ever seen after many versions of Premiere Elements, the following is not possible as you wrote
I newly installed premiere elements on "D", later I installed organizer
"Premiere Elements" installs in one install Premiere Elements Editor and Elements Organizer. There is no "...later I installed organizer". So, please explain what you did there.
It is important to install Premiere Elements on the Local Disc C during the program installation. There are components in the program that will install to default locations no matter how hard you try to relocate them.
My Premiere Elements answer to your Premiere Elements question would be:
1. After uninstalling Premiere Elements from D and cleaning the computer with ccleaner, install Premiere Elements from your installation files or disc to the Local Disk C
Assuming a Windows computer...CCleaner - PC Optimization and Cleaning - Free Download
2. In the opened project, set up the Scratch Disks to point to the D drive. See Edit Menu/Preferences/Scratch Disks.
Please review and consider. If any questions or need clarification on your Premiere Elements workflows, please do not hesitate to ask and I will offer customized reply.