Try to move your Catalog reference files and see if PE7 will open. Go to C:\Documents and Settings\All Users\Application Data\Adobe\Photoshop Elements\Catalogs\My Catalog and drag catalo.pse7dB and thumb.5.cache to your desk top. then try to open.
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Also, please tell us more about the details of the motion Assets (the AV files). With some types of media (format and CODEC), PE will give one only an icon view, with no thumbnails. If you are not sure of all of the details of some of these, both format and CODEC used, you can download and install the freeware, G-Spot. When you run your files through it, you'll get the full details of those files. For more info on file formats and CODEC's, see this LINK to the Tips & Tricks sub-forum.
It worked. I had a double up of cataloques with the same name - the rogue one with different files in causedt th problem in the location you gave me. Thanks.