So long as the H.264 CODEC is installed (usually via QT Player), and your camera has not tweaked it too much, things should work. If the mfgr. has tweaked the H.264, then they might supply their version.
Why the AVI wrapper was chosen is a bit odd, and might well point to H.264 tweaking inside that wrapper?
I also am concerned with H.264 AVIs. They may not go in Premiere Elements.
That camcorder shoots in a number of definitions -- from hi-def to 720p to standard def -- but none of them use video format Premiere Elements would likely be comfortable with.
I would be wary of these low-end hi-def camcorders. They often use non-standard formats and codecs (not all H.264 video is the same) that won't work in any video editor except what they give you with the program.
If you can't try before you buy, I'd recommend against it, if you plan to edit with Premiere Elements. Particularly since Toshiba is not noted for making camcorders.
It might be good though if you just plan to shoot your videos and then upload them directly to YouTube without editing though. (Note that one customer review indicated that he couldn't even work with the videos on -- or even view them -- on a Mac!)
Well, since I already bought the camcorder, a test drive isn't an option. I am able to play these files in Windows Media Player, after downloading a codec pack, the name of which escapes me. But with Premiere Pro 2.0, it's a no-go as far as editing.
I suppose I should just download the free trial of Premiere Elements and give it a try. If I do that, I'll report back here with results.
Full HD support was not added to PrPro until CS3, so that PrPro 2.0 does not support those files is not a surprise to me.