More info on my hardware: AMD Phenon II x4 925 Processor, Display Adapter: ATI Radeon HD4350, Memory: 8gb PC3-10699DDR3 SD RAM, 2mg L2 and 6 mb Shared L3 cache memory, Monitor: HP W2338 Wide LCD Monitor. My Flip Video Camera I used to record my video was the Flip Ultra.
Memory (and resources) are not just RAM, but also one's Windows Virtual Memory, i.e. the Page File.
Many programs and Processes load at boot up, and a lot of those are not really needed. Computers from retail companies are some of the worst offenders, as tons of bloatware are usually included. These rob necessary resources.
This ARTICLE will give some tips on getting your machine ready for an editing session.
There are also several FAQ entries that give tips on optimizing the program, the OS and the hardware. Those are all worth reading.
And at least as big an issue is the fact that you're using video from a Flip camera, which uses a form of MP4 that's incompatible with virtually every vidoe editor (except for the one that comes with the camcorder).
The FAQs to the right of this forum offer information on making this video work in Premiere Elements.