It appears that you're using a pre-version version of Premiere Elements, which means that you need to set up your Project Settings manually -- and that can only be done when you first start a project.
Start a new project and, on the New Project panel, click Settings.
*If you are working on a standard definition project or video for a DVD, select the project preset for DV/Widescreen.
* If you are working on a high-def 1920x1080 project, select the project preset for Full AVCHD 1920x1080.
Much also depends on the model of camcorder the video you are editing is coming from. And, if you are getting video from a non-camcorder source (and it appears you are) there may be other considerations including the format and resolution of the video file, the codec/compressor the software that created the video is using and if this material is copyrighted and/or downloaded from a site like YouTube.
My dude I cannot thank you enough. Sorry that im kinda of dumb when it comes to this kind of stuff, but thank you so much for helping me out!