Unfortunately, you've posted to the FAQ section. Unless Steve, or another MOD moves this out to main forum section, it will probably not be seen.
Do not know if PE-7 is exactly the same, but here's the Path to my PE4 setup. Note: I install all of my Adobe programs under C:\Adobe. You will probably have yours under C:\Program Files\Adobe\Premiere Elements (this might change to PE7, or similar)\Movie Themes\Entertainment\Performance Star. In that, or a similar hierarchy, you should have about 22 files, and the Human Crowd Cheer 04.mp3 should be in that group.
The Project files (the one you create, when you choose "New" is only an XML database, called [Project Name].prel. Sometimes, things can become unlinked in this file. PE is pretty smart and will help you re-establish those links. I'd let it help, and it'll open the dialog box that you encountered. There, navigate to the Path above, or similar, depending on where you installed PE7. Once you get down to the Performance Star folder, PE should find this file.
Now, it's possible that the file was moved. I could see this happening if someone thought that this was a music MP3 and stuck it in iTunes, or similar, without checking it out. If it's not where I pointed to, then do a Search in Windows of the entire C;\ for that file. Where ever it is, I'd move it back.
Now, if you're working from an external hard drive, you could have some issues with it being assigned a different drive letter by the OS. If you are using an external, let me know and I'll step you though assigning a permanent drive letter to it, so this does not happen again.
Good luck, and I'll try to flag Steve to move the whole thread out to the main area,
Thank you for your help, I was searching through the main area but thought to check FAQ before I posted my question. Did not realize it linked here.
I did as you suggested and was able to locate the file! Problem solved!
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That's great news. It also looks like Steve was able to move the post.
Looking at the FAQ's first is a great idea, and I wish that more would utilize that area. Steve has been working very hard to get them back up and running. The forum changeover deleted a lot of the FAQ's from various fora. There's a lot of work ahead for the MOD's. Also, the fora have been a tad wonky, since the changeover and people have had experiences of posting to one forum and having their post appear elsewhere. It seems to be getting better, but is still a work in progress.
Big thanks to Steve, and good luck to you,
No I'm not - just put on a few pounds recently....