I am getting green flashes on my video in PE7. These green flashes are not there when I view the video using Windows Media Player. The green covers the entire picture, and then goes away over the course of less than a second in most cases. I burned the video to a DVD and played in a DVD player to see if it was only while in PE7, but they were burned to the disc that way as well. If you need any other information to help, please ask.
A lot depends on what kind of camcorder your video came from and how you got it into your computer -- and which settings you selected when you set up your Premiere Elements project.