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Welcome to the forum.
Sounds like you have done everything correctly, including the drivers. Note: nVidia JUST released some updated drivers, that fix some issues with PrE 8. If you updated your drivers over about 2 days ago, you might want to check, just in case there IS a newer one and one that will help.
Other than that, you might want to look over this ARTICLE for some tips on getting a computer ready for an NLE session.
Beyond the thoughts above I do not have any useful ideas.
PS - two things to look at beyond the above:
Hardware Acceleration. If it's max, try at min. If it's min. try at max. If you get a change, then increment up, or down, until the crashes happen, then back off one increment.
Check your OpenGL in your video card's control console and experiment with adjustments there.
Message was edited by: the_wine_snob - added PS
And, yes, there are many reports of problems for people running Premiere Elements 8 on Windows 7 64-bit.
It appears that 64-bit drivers for Windows 7 aren't yet fully compatible with 32-bit programs like Premiere Elements.
Try runnung the windows compatibility program. refer to Vista. This program has serious problems. This is not the only one.
Like Vista, Windows 7 automatically shifts into 32-bit compatibility mode when running a 32-bit program. So the operating system isn't the issue.
It's the 64-bit drivers that the program and operating system must interface with.
Windows 7 is still relatively new, as I said. Most of the third-parties that create drivers support W7 in 64-bit mode. And, until they get around to making those drivers compatible with 32-bit programs, Windows 7 64 is going to give Premiere Elements problems.
On my 32-bit Windows 7 dual-core machine, Premiere Elements 8 runs very well with only a few problems.
Thank you all for the quick replies.
I installed the latest Nvidia GTS250 driver (from the Nvidia site) and guess. No crash anymore when selecting the edit menu.
My graphical card is a Asus GTS250 DK/DI/1GB and I was using the latest drivers retrieved from the asus site. Those drivers are old.
I can now continue to evaluate Premiere Elements 8.0
Thank you for reporting, and here's hoping that you will be crash-free.