Ideally you will have more success using clips with the same attributes. You should take a look at: How can I convert my AVCHD footage to more traditional HDV?
What project preset are you using?
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Thank you for your response.
Project preset is: DV PAL 25 fps Frame size: 720 x 576 (16:9).
I will have a look at the suggested threads and links.
Are the files that I am importing AVCHD files?
Are MPEG 2 files smaller and less demanding on memory?
Your Fuji Finepix is NOT producing AVCHD files -- which is probably at the root of your problem.The MP4 files it creates are not compatible with Premiere Elements.
The FAQs to the right of this forum tell you how to convert your video to DV-AVIs. For MP4s the ideal convertor would be Quicktime Pro, which costs $29 from Apple, although you may also be able to do it with Super.
You can then use the DV project preset to edit your file.