It depends on what your ultimate goal is, Loretta. What type of file you ultimately want to output. And, to a lesser extent, which version of the program you're using.
The HMX10 is a hard drive camcorder, which means the video is saved as MPEG2s inside the camcorder. You can not streaming capture into Premiere Elements.
Your options are:
BEST: Convert any MPEGs to DV-AVIs before you bring them into Premiere Elements. This makes the most efficient use of the program and your system's resources. Here's one way to do it:
GOOD SOLUTION: Download the video from the camcorder into your computer using Premiere Elements' Media Downloader, but make sure you've got your video project set up with the preset for hard drive camcorders. You'll likely have to render (press Enter) frequently as you work though.
ALTERNATE SOLUTION: Edit using a program that's built around the MPEG workflow and leave Premiere Elements out of the process completely. That means editing the video with either the program that came with your camcorder or using a program like Sonic MyDVD, an editor which uses "smart rendering" with MPEGs, taking best advantage of the MPEG format.