You can absolutely use your C drive for your programs and your D drive for your video, photos and project files. In fact, that's the preferred setup for most professionals.
However, 8 gigs of free space on your C drive is not nearly enough for Windows to fully deploy Premiere Elements. I wouldn't recommend running a program like Premiere Elements with any less than 50 gigs of free space on your C drive. Otherwise, your program is going to crash pretty regularly.
I have Premier Elements 9 installed on the C drive, Windows 7, can I transfer this program to D drive or do I need to re-install to D drive.
You helped me with my previous question to put photos and videos on the C Drive but I had to start all over again with my video on the D drive.
Common practic is to put programs (including windows) on C and the rest on D.
Might need to run Crap Cleaner or something simular on your C drive.
Elements has a clean button for Media Cache. Use that.