What version Premiere Elements, what computer operating system?
Can you drag the clip into place? Delete and Close Gap can have problems depending of what is directly above and below the gap that you want to close. Also..
Could you post a jpeg screen of your Timeline gap or give a fuller description of the situation about the clip on its track and its relationship to track content directly above and below it?
The specified item was not found.
Any questions or need clarification on the above, please do not hesitate to ask.