What type of camcorder is your original video coming from?
When you started your Premiere Elements project, did you ensure that your project specs match your source footage? If your settings match your video, you will not see red lines above the clips on your timeline unitl you add effects to them. Is that the case in your situation?
Have you also ensured you have the latest version of Quicktime from Apple?
I already had the latest quicktime installed when I intalled premiere
elements 9. Are you saying I need to reinstall quicktime? Seems a little
screwy since the codecs are machine based and premiere elements only
provides a wrapper to use them.