For a variety of reasons, MOD files from JVC Everio camcorders can be challenging for many video editors, including Premiere Elements, to work with.
Forum member MarkItVision offers his best solution for making the files easier to edit.
Using CyberLink Power Director Express - a program which comes bundled with the camcorder - capture the video and then place it on the timeline. Then go to File>Produce Movie and at "step 1" select "create a file"
Change the settings as shown to Type II and High Quality 48k. Change settings by clicking on the button two over from the one labeled CLVS and you can confirm the audio is PCM using the button to the right of it.

Follow the arrow "right" and give your file a name and location It will output the AVI as a DV-AVI Type II 48kHz PCM.
Import this file into a Premiere Elements project. The program should work easily with it.
To conform your video file for widescreen, drag it to the timeline, right-click on it and set it to "interpret footage as D1/DV PAL (or NTSC) Widescreen 16:9 (1.422)".