No need to say that you already tried to restart application.
For 'Device error', try whether device working properly with some other application like Window Movie Maker or other app comes with BluRay burner.
'Device error': try to connect device first and add media to it and than start Premiere Elements
'Device Error': Insert some bluray dics or movie to bluray burner and check whether window explorer able to read it properly.
'Device Error': update Blu-ray burner firmware.
'Device Error': In Premiere Elements, Share, select 'BluRay' not 'DVD' and click on rescan.
Please try these options and till than let me think some more way to help.