The SX41 is a hybrid camcorder, recording as MPEG2 to 8 gig of memory.
When you start a project for this camcorder in Premiere Elements, you must use the Hard Drive/Flash Drive project preset. (This is very important.) To get video from the camcorder, use Get Media for Hard Drive/Flash Drive Camcorder and download the footage to your computer using the Media Downloader.
You'll also notice that, when you add the video to your timeline, there will be a red line above it. This means that, because it is hybrid video, you will need to render it as you're working. To render your video press Enter and the red line will turn green.
When the line is green, the video will play at its final output quality.
The other option is to convert your source video to DV-AVI prior to import into PE.
This will also eliminate the need to render your video within PE.
PE works best with DV-AVI and this will reduce many issues that are encountered with other formats.
My sacred rule-of-thumb is to convert, whenever, and where ever possible, prior to import (for hassle free editing with PE).
See this FAQ for convert options:
Thank you so much I've been working on this forever finally i have it figured out.