It depends on what kind of camcorder your video came from and which project settings you're using.
If your video is from a traditional tape based miniDV or HDV camcorder, you only have to render if you add effects.
If your video is from an AVCHD camcorder, you will likely have to render -- but this type of video can demand a quad core processor to work with anyway, so rendering shouldn't take too long.
Other video -- such as video from Flip camcorders or from still cameras -- probably ought to be converted to a more standard format before you bring them into Premiere Elements.
Mine is an AVCHD Camera, and i am running a dual core processor. So would that be y it takes so long to render?
Yes. Most likely. As I say, AVCHD is probably the most challenging format to edit on a PC. It takes at least a quad core processor to do it without a lot of sitting and waiting. Sorry.
Alright, one more qiuck question. is it possible to show two diffrent clips at the same time in my project?
Yes. Add the second footage to another video track. Then vary motion (where you can set position and size) and opacity - both standard properties of every clip. Then add other effects as necessary. I think the maximum number of video tracks is 99 in PRE.
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The term for this is PiP (Picture in Picture). Neale has given you the most common way to do this. There are a few others, should his instructions not be quite what you want. I do not recall the version of PrE that you have, but in the later versions, there are even PiP Presets, though I find that doing my own offers far more control, and I can exercise both my artistic and technological license.