First, you'll need to confirm that that device captures your video as DV-AVIs. If not, you could be dealing with other issues.
To see if your captured video is DV-AVI, open a file in Windows Media Player and, while it is playing, go to File/Properties. You'll see the audio and video codecs there. But, if you see something other than DV listed, your device may not be compatible with this program.
If, on the other hand, you are capturing DV-AVIs -- and you can hear the audio when you play the clips in Windows Media Player -- then it's just a matter of configuring Premiere Elements audio hardware. You do this in Premiere Elements by going to Edit/Preferences/Audio Hardware and clicking on the ASIO Settings button.
You are the man!!
In short, it was my oversite. Your suggestion leading back to the audio hardware page then lead me to the Project Preferences/General/Playback Settings where I found that I had overlooked the ability to select between Desktop Audio and External Device Audio. It worked!
Thanks for your time!!! I owe you a Pepsi ... or Coke ... or whatever!!
Make it a Diet Dr. Pepper and I'm in! Glad you're up and running.