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Not many of us here are familiar with Elements, and Camera Raw is limited in Elements. Try posting in the Elements forum:
Might I suggest you consider using Lightroom? It has the full develop capabilities as does ACR in CS3 (or will when Lr 1.1 is released).
And if you do not much care for the raw processing software that came with your camera you should download and try Lr. It is a much cheaper alternative to an upgrade to CS3.
Also, see this:
I will post in the Elements forum as you suggest;
Thanks for the Lightroom suggestion....also the last message posted on that link suggested using the magic wand to iolate the fringe and desaturate - a possibility I think.
Many thanks to both of you