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I would not recommend editing AVCHD on that computer, Will. AVCHD is highly compressed high resolution, and it would likely bring that computer nearly to a halt.
I'd recommend, if you want to edit AVCHD with Premiere Elements, you buy a quad-core computer with lots of RAM.
Short of that, there are computer programs that can edit AVCHD more efficiently and you MIGHT be able to cut on that computer. The best is probably the program that comes with the camcorder. It's likely rather limited, but it will get the job done.
Nice find, Paul!
The world is really innovative, solutions crop in for everything. AVCHD Upshift looks good.
However talking about your system here, Will, i would recomment you to upgrade. you certainly need a processor for AVCHD editing and also decent RAM. Quad-core is the best fit for HD editing on NLE's. Else with the current config, even if u upgrade to like 4 GB RAM, the performance will be really sluggish...