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Well, technically, it will work with Premiere Elements 7.
But these type of camcorders, which record to a format called AVCHD, can be a real challenge to edit on pretty much any PC-based editor because the files are so huge and so highly compressed.
Those who are successfully editing AVCHD in Premiere Elements are doing so on computers with quad-core processors with 4 gigs of RAM. I don't know about you, but that's a bit rich for my blood.
If you're looking at upgrading to hi-def, I'd recommend you look into a tape-based HDV camcorder, like the Canon HV series. This camcorders produce excellent results and their video can be edited on most current computers.
I have an HG-10 with elements 4.0, I have been trying to get it to work but no way. I guess I should have done my research before buying it. It does take amazing video and I do love the Hard Drive. Does anyone know which software to use to make it more user friendly?
PE7 will handle the AVCHD files from the HG-10. Otherwise you need to convert them to work with PE4. Adobe gives these suggestions: