I could find no specs on that camcorder so I can't speak to specifics.
But, that said:
Yes, Premiere Elements can edit MPEGs from a hard drive or DVD standard def camcorder.
It's just not a camcorder format I'd recommend. For one thing, although you can load the video into Premiere Elements, it doesn't edit this format natively (as it does miniDV, HDV and AVCHD). So you'll be constantly rendering the video as you work. Not necessarily a dealbreaker -- but also not the most efficient format to work with.
So, if you're planning on editing your video in Premiere Elements, I'd recommend you return the camcorder while you still can and go for either a tape-based miniDV or HDV camcorder or an AVCHD hi-def camcorder. (AVCHD camcorder footage can be very challenging to edit, so don't invest in it unless you have a quad core or i7 processor.)
That Sony is essentially out-dated -- and terribly inefficient -- technology.
You'd pretty much be stuck with using the software that comes with the camcorder to do your editing.
Thank you for your advice. I think I will take your recommendation and return the camcorder. Thank you also for answering my next question which is what type of camcorder should I buy. I will see if I can still find a tape-based mini-DV. Any suggestions for a brand to purchase and/or stay away from.
Canon and Sony are far away the best, most reliable camcorders.
You won't likely find tape-based camcorders, by the way, in most big box stores. They've pretty much all gone to hard drive cams, despite the liabilities.
Great deals on miniDV and HDV can still be found online though!
I have NO idea if any of these are still sold, but reading is free
For a Firewire DV Camera - look at Panasonic PV-GS320 or GS500 (Note that I have not used either, but they have good reviews)
Or Sony DCR-HC52 Forum message Mar 2010 said $199 direct from Sony (but... refurb)