You're running Windows XP on a dual-quad computer? Have you considered upgrading to Windows 7? It will likely resolve a number of issues.
What type of camcorder is your original video footage coming from? When you started your Premiere Elements project, which settings did you select?
Have you ensured that all of your drives are formatted NTFS and not FAT32 (as they come from the factory)? FAT32 drives have a file size limit that frequently chokes video work.
Have you ensured that you don't have any Norton products on your machine? Do you have at least 20-30 gigs of free, freshly defragmented space on your C drive?
When did you last tune up your computer with a program like Advanced System Care?
Thank You...I will check it out
Thanks I will check into your suggestions