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In most cases, you will run into problems trying to open a previous version project with a newer version of the program. (The programming for Premiere Elements changes that much from version to version.)
You should finish your version 3 project work in version 3.
Just a thought....
How are you opening the Premiere Elements 3 project in Premiere Elements 7?
According to the Adobe party line Premiere Elements 7 PDF, you can open projects created in earlier versions of Premiere Elements in Premiere Elements 7, but you cannot open projects created in Premiere Elements 7 in earlier versions.
Do you have Premiere Elements 3 and 7 on the same computer at this time?
The Adobe suggestions is, if problems in this regard and instead of right clicking the project file in its saved location, then:
1. open the project from with Premiere Elements 7
2. right click the project file in its saved location and name Premiere Elements 7 as the Open With program
Check it out to see if I have interpreted this info correctly
Editing correction to:
Where it says "The Adobe suggestions is, if problems in this regard and instead of right clicking....."
That should be "The Adobe suggestions are, if problems in this regard and instead of double clicking...."
Sorry for the right clicking instead of the what I intended = double clicking.
I would not agree with G Steve here.
The Forward compatibility works fine in Premiere Elements. Its the backward compatibility that they dont claim to support. (and it doesnt work for most applications).
There could be some slideshow graphics from Photoshop Elements that might not exist anymore in the latest version though. But that should not stop opening the project.
Does these open fine in PRE3.0.
(make a copy of these file and save a backup copy set and then play around with the originals- to avoid loosing data)