As we've often indicated on this forum, Everios are a unique challenge -- not just for Premeire Elements but for virtually every major video editor (as can be seen if you do a Google search).
The FAQs to the right of this forum offer the best solution we've found.
Speaking of our FAQs, have you seen our recommendations for optimizing Vista for video editing?
Well the thing is that it has worked perfectly for me for the past few years in Premiere Elements 2.0, and now i've upgraded to 7.0 it wont work! Im not sure if its to do with a fields order issue or anything but ive played around and nothing works. I did wonder if the two files im trying to import, 3.1gb and 1.6gb respectivly are corrupt because windows explorer crashes when it tries to load thier thumbnails.