The Canon SD1200 is a still camera, and video from that camera likely uses the MJPEG-AVI codec, which will likely not work with Premiere Elements.
The solution is to convert the video to DV-AVIs using Windows MovieMaker, as in the FAQs to the right of this forum.
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For tips on AVI files, and how to tell what is inside the wrapper, this ARTICLE might help you.
Steve's tip on conversion is a good one, and will likely yield a more easily editable file format.
Still, using these will take resources. Doing a conversion will require much less.
Windows Movie Maker did the trick. Thanks!
Glad that it worked for you, and thanks for reporting.
WMM is a very good little program. It lacks the power of PE, but sometimes, that is some of its beauty, because it uses fewer resources to do what it does do. It's been used as a tool to convert many formats to DV-AVI Type I files, which PE and PrPro usually edit fine. The ultimate is the Type II, but Type I is close. On occasion, the Audio & Video will be OOS (Out Of Sync), but this is usually very easy to fix, should it occur. There is a Duration limit (file size) on Type I's vs Type II's, but seldom comes into play. Should it, one can just split their Project in WMM to get files that fall under that limit. No biggie there.