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It depends on what you're using for source files and your project is set up, David.
Besides, the space they take up should be incidental, compared to the 500 meg per minute AVIs use. (And you won't save space by loading MPEGs, because Premiere Elements needs to turn them into AVIs in order to work with them.)
Generally, if you're concerned about space on your hard drive and you're editing video, it's time to get a larger hard drive. Video editing requires hundreds of gigabytes of space and sometimes almost that much more for scratch disc and temp files.
Sorry, I guess I wasn't clear. PE dumps a bunch of template files (e.g. autumn_leaves_prv 48000.cfa) that aren't even part of my project into the cache folder of my project. I can see it doing this in the background in the lower right corner - conforming this file or that file. I don't need these files in my project and I don't want them taking up space. Most of the work I do are short videos of my son's band for YouTube (see www.youtube.com/stillpendingmusic if you are curious). I've been getting by with very little hard drive space and it has worked out fine. I am just curious about these template files that are being "conformed" for every project I make and dumped into the cache folder taking up unnecessary space. Thanks for all of your helpful replies.
This is discussed over on the Muvipix forum: