What codec does G Spot report the file uses and what format is the file?
What model of camcorder did the video come from?
Also, do you have Quicktime 7 installed, per the program's system requirements? It provides important codec information for version 11 of the program.
It's an AVI using the H.264 codec -- which doesn't sit well with Premiere Elements.
Easiest solution is to run it through the free download Handbrake and convert it to a 1280x720 MP4.
Thanks Steve! Converting to MP4 worked great. Now I have another problem-PreEle11 crashed when I tried to burn my disc, but I'll post something separately for that.