ok, so i downloaded a free converter and converted to mp2, this seems to work, but is this really necessary???
First, it depends on where that AVI is from and what codec it uses. (You can easily see the codec by opening this AVI in Windows Media Player and then going to File/Properties.) Video from still cameras, for instance, uses MJPEG-AVIs, which are not compatible with Premiere Elements.
The ideal format for working in Premiere Elements is DV-AVI (not MPEG). We have a number of conversion programs listed in the FAQs to the right of this forum. If you can tell us which codec your AVI has, we can direct you to the right converter.
You can also get even more information in my free reference sheet "Converting Video for Premiere Elements" at Muvipix.com.
AVI is but a "wrapper." It can contain anything. This ARTICLE will give you tips on "peeking" inside that wrapper.
Often, when one gets either Audio-only, or Video-only, it is because of the CODEC in the wrapper. Xvid, or DivX are two common CODEC's, that cause this to happen. Neither Xvid, nor DivX, are designed to ever be edited, and conversion is the best course of action. CyberLink's PowerDirector does handle it natively to a degree, but the quality (because of the Xvid/DivX compression) will never be very good. These are delivery-only CODEC's, and are not meant to be edited.
the MPEG Streamclip is working perfectly. I am going to try the other converters too. Thanks so much!!! Your suggestion was very helpful.