According to forum member Eelco van Vliet, Premiere Elements has a memory leak. Also Vista32 only allows 2 gigabytes of memory per process unlike Vista64 and windows7.
To allocate more RAM, go to:
START BUTTON -->ALL PROGRAMS -->ACCESSORIES-->RUN
In the Run box, type:
BCDEDIT /set increaseuserva 4096
Technically it's not RAM space that it's allocating. It's the memory space. RAM is the physical memory in the machine which impacts performance but even if you only have 1GB RAM a 32 bit OS can still address 4GB of memory (windows gives 2 GB to the OS and 2 GB to applications...unless you modify some settings).