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Well, I got it, but I am not quite sure what I did.
Any solution is a good solution, Phil!
The Chinese writing with a red or gold background is usually due to the program not being able to locate the clips/files.
If you change the location of files on hard disc after using Premiere Elements once, and then you try and open the project again, it will give this error. You need to clear items in your project window and re-import the files.
Thank you for pointing that out. Although I never moved the videos around I now realize that it had just not recognized it yet.
If it happens to me again I will know what to do.