This is an AVCHD camcorder, so it should work with Premiere Elements 7.
As you know, only tape camcorders can stream video into the program, however. So DVD and hard drive camcorders must download the video as blocks of data (MPEG4s) over USB.
Also, AVCHD video editing takes LOTS of power, so go with the highest hardware recommendations in our FAQs for version 7 at the top of this forum. And, if you're using a Vista machine, make sure it's optimized for video editing.
I agree with you Steve,
for a resource intensive High Def. Editing, its better to use a strong CPU and 4GB RAM would be good. What is more important to keep you machine free from redundent memory intensive processes so that Premiere gets sufficient CPU power to give you a good editing experience. Most of the footages i have from different AVCHD camera's have not given me any issues as of now. so i guess Sony HDR-UX10 should also work well.