Does the situation in these messages fit you?
Things and Software to AVOID when authoring/burning a DVD
Start --> http://forums.adobe.com/thread/608660?tstart=0
#2 here has WHY Explained http://forums.adobe.com/thread/607390
Error codes don't mean much in Premiere Elements. (Though it is strange that your error code seems to indicate a problem with Photoshop, not Premiere, Elements!)
In any event, the best way to figure out what's going on is to work through the troubleshooting steps in the FAQs to the right of this forum.
If you'll describe what happens in each step in as much detail as possible, we'll likely be able to diagnose your problem and recommend solutions.