It sounds like Windows is recognizing your camcorder's connection, right?
And I assume you're capturing in HDV (not standard DV) format, right? So you've got your Premiere Elements project set up for HDV.
It should work. But, particularly if you're using Windows 7 64-bit, it might not.
If that's the case, the best advice is to use HDV Split to capture your video. (Assuming it works on a 64-bit operating system.) The video it captures should be compatible with your HDV Premiere Elements project.