Before I start the title to this thread is a very wild stab in the dark. Let me start from the top.
I recently decided to progress on to Premiere Pro after using a (quite old!) version of elements for the last couple years. I paid for it and installed it only to find a series of issues including timeline play back not working properly and audio cutting out or never being present. After a few days of tinkering and getting nowhere I elect to cancel and go for the most modern version of elements thinking I'll have better luck.
I'm having the same problems.
Whilst I could have believed my computer lacks the clout to run the professional version, there's not a snow-days chance in hell it should struggle with Elements. The main issue seems to be when I start up my speakers start to give off a static like crackling noise. The audio will then fail to work, usually followed by a complete failure of video playback too. When this last happened I had some editing that urgently needed done so I opted to use my old version, only to find playback had suddenly stopped working on that too. Checking out other systems, I found my computer now wouldn't play video in the video app, media player, or even YouTube!
Even more puzzling is restarting the computer seems to make everything fine again. I should note my PC has never had any technical issues of any kind before this and I'm puzzled. I realise this is more the domain of a PC forum but as the problem only started with trying to install new premiere software I thought someone here might have an insight.
There's definitely something up with your computer -- but you haven't given us nearly enough information about it, the version of Premiere Elements you're working with or the camcorder your video is coming from for us to help you. In fact, I'm not sure we can even troubleshoot your issue with any effect here on the forum.
I'd recommend you first go to your computer manufacturer's web site (Dell, HP, etc.) and ensure you have the latest drivers from that site -- as opposed to letting Windows load them for you.
That is if you have a Windows computer. You really haven't given us much to work with.
But your issue definitely sounds like a driver issue first and foremost. Hopefully it's not a short in the hardware itself.
But it's least likely to be an issue caused by this software.