That is correct. Premiere Elements can not work with 1920x1080 24p or 60p video.
You may be able to use the DSLR project preset but it's not a perfect match and may lead to problems later.
I very much recommend you don't try to compromise these project settings. Matching your project settings to your video is vital to a successful project.
However, a talented user on our forum has created a way to create presets for working with this video. They're not endorsed by Adobe, so use them at your own risk. However, gvimuser certainly seems to know what he's doing.
Thank you so much for the response, though obviously this is not the answer I was hoping to hear.
Unfortunately, the patch you linked to appears to be for Windows only, and I'm running a Mac.
I take it there is no other work-around? There's no way to customize the presets on Premiere Elements 10 running on a Mac?
I completely agree that I don't want to compromise the basic settings - I tried using the "DSLR" 1080p 24fps setting, and my footage is barely playable. Do you think that the AVCHD 720p 24fps setting might be ok, albeit at lower quality?
Lastly, if Premiere Elements is out, is my only other choice Premiere Pro? I'm trying to avoid FCP X since I've got no desire to learn a new paradigm for editing, and would prefer for now to avoid transcoding all my footage into Prores (though I realize working in Prores or some other easier to edit codec may make sense once I get to the serious editing stage).
DSLR is AVCHD, if that is your ONLY concern.. I mean the DSLRs shoot files in AVCHD progressive formats. So I think this is what this preset also refers to. You can try it and then decide if PrE10 is your solution or as Aniks suggests, Premiere Pro could be.
But not having tons of processing power could hamper your editing workflows, and most definitely so if you are planning to go to Premiere Pro. You can do your small edits, and also transcode (export/render/share/burn), but at leisure. Overnights, weekends etc.