I just tried this, and couldn't reproduce your problem. 
I see in this other post you seemed to resolve your issue by applying an update to Elements:
Charlie, I have not tried the PAL setting but
since I am NTSC I doubt that will work. I was able to upload a small 5 meg file lasti
ng 35 seconds. But when I tried to upload a 6 min 55 meg file it gave me the same err
or. Is there a limit to the file size or amount of time for one video. When I use the photo express loader or upload a wmv file to photoshop.com it works okay. But the direct to photoshop is so much easier to use when it works.
NTSC really shoud be fine. Do I understand that your video completes rendering OK before uploading commences?
The upload file size limit is 2GB, with no real limit on video duration. When you export your video to your hard disk as 640x480 mp4 video, how big is it? That's approximately the size of what Premiere Elements is trying to upload. Fyi, I just uploaded a 1:45 hour video to my account just fine.
I'm going to move this thread over to the Premiere Elements forums in hopes a real Elements guru can chime in. If something like refreshing your public profiles and settings is required, I prefer an Elements team member or guru share their insights.