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Look in your project panel and search with the keyword "sequence". Does it appear in the panel?
Thanks, you are absolutely correct. I was so used to the sequence showing up automatically when I open the file, I didnt even notice that is was actually in my assets! When I double clicked it, it came up with no problems!
Aanarav, thank you so much for your wisdom! :) I just purchased Adobe Premiere Elements 3.0 with Adobe Photoshop Elements 5.0 a little under a month ago and then decided to upgrade to Adobe Premiere Pro CS3 with Adobe Encore CS3 last night. I was shocked when I opened up the .PREL file this morning to find that my timeline wouldn't open up, nor could I add anything to my timeline. Thankfully, Jeff had a similar issue to mine and between the two of you, you just saved me over 10 hours of work to re-do what I had been working on over the last two weeks.
Glad to be of help!