The regular Hard Drive/DVD camcorder preset should work. (Depending on which version of the program you have.)
AC3 is merely Dolby stereo. You should have no problems with it in Premiere Elements.
From the Sony spec. sheet (linked in the other thread), it appears that this camera records in Surround Sound. There were not any comprehensive details, so I made some assumptions as to how the DD 5.1 SS is laid down and Exported.
In PrE 7 & 8 is the only Project Preset for Surround in the AVCHD Presets?
Am I correct that if the Audio IS Surround, so long as the proper Preset for the Video is correct, the SS Audio will still Import, but that Sceneline will "stack" the Clips and that everything would be fine on the Timeline? I know that with AVCHD, if one has NOT chosen the SS Preset, the Sceneline does stack the Clips, but works fine, so long as the DD SS is also chosen. I just do not know if there is a non-AVCHD Preset that DOES include the DD SS Audio option.
Thanks for the clarification, as I do not want to steer the OP incorrectly in this.
Appreciated, as always,