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Premiere Elements can work with stereo audio -- but generally can't work with dub tracks, if that's what you're talking about.
In order to take advantage of these types of features, it's usually best to use a professional video editing program (like Premiere Pro CS5) rather than a consumer program with a professional camcorder.
Well I've recorded 2 channels of audio on the tape - is that what 'dub tracks' means? So does that mean that the audio file PRE brought in is a combination of the 2 tracks? I've been thinking about Pre Pro for a while - I've been using Elements for about a year - I feel fairly comfortable with it and I know how to do some keyframing - how big is the learning curve from Pre Elements to CS5?
The principles are the same -- but it's a much more powerful program.
I'd download the free trial and give it a test drive.