Are you using version 8 of Premiere Elements? Are you using Windows 7 64-bit by any chance?
In any event, install the latest version of Quicktime from Apple.com. That usually resolves this issue.
And, of course, if you haven't already, go to the Help menu of Premiere Elements and Check for Updates to ensure you have the 8.01 patch.
To be safe, I went ahead and made sure Quicktime, my video card drivers, and PRE were all up-to-date. Restarted the system after all that, loaded up my file in PRE, rendered a work area, closed PRE, reopened the file, and the red bars were back.
Any more thoughts,
I'd be inclined to convert the clips to DV-AVI or HDV before putting them into PRE.
Details can be found in the Premiere Elements FAQ
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