Premiere Elements does not rotate photos automatically.
When you say the photos are properly rotated in Photoshop Elements, do you mean that you opened each photo up and assured it displayed properly? The reason I ask is that photos rotated in the Organizer's Media Browser so that they appear to be upright -- but in reality only their thumbnail is rotated. The photo itself is still portrait rather than landscape.
The other possibility is that you shot your photos using your phone. Sometimes the auto-rotate feature on a smartphone reads your rotation and wrong and the picture can appear to be landscape in some program and portrait in another.
If you can post a JPEG sample to this forum of a photo that is correct in Photoshop Elements but incorrectly displayed in Premiere Elements, I'll be glad to see if I can see what's up.
That is strange!
What is the height and width of this photo, measured in pixels?
2448 x 3264
One would think if I rotated them in Photoshop Elements, they would stay rotated. I did overwrite the original file with the rotated file. Could that have anything to do with it?
Have you tried resizing the photos 2500 pixels wide and 1875 pixels tall?
Rotating and saving the photos correctly in Photoshop Elements is a good thing. That should cause them to appear correctly in Premiere Elements.
However, as I said, rotating the photos in the Elements Organizer does NOT change the actual rotation of the photo. It only changes how they are displayed in the Elements Organizer. It doesn't change the actual photo.
I definitely rotated the photos in Photoshop Elements, but worry the save didn't take right. I opened them from Windows Explorer, in fact, and not even organizer. I did use organizer to rename them a time or two (once I had them ordered in the right sequence.)
I can just go through and rotate them in the video I'm doing, but don't remember seeing this behavior in the dozens of other videos I'v done in the past, where I often scanned in multiple snapshots, opened them in Photoshop and separated them into individual photos.