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What model of camcorder did the video come from that's on Video 2? I'm guessing it's not the same as the video on Video 1.
The watermarks you're seeing and lack of video image indicate that the video needs to be rendered in order to be seen. However, rendering has been disabled in the trial version.
If your project is properly set up to match the camcorder video you're using, you should NOT see red lines above the clips on your timeline (as you do) and you should not have to render the video until you add effects to it.
What camcorders is your video coming from? And which project settings did you select when you set up your Premiere Elements project? Your project settings will need to match your video specs exactly in order for you to work natively with the video (that means you don't have to render it).
Thanks for the feedback Steve ..
In the screen-grabs above, the video clip was from an old VHS imported to iMovie (using a canopus ADVC-55). I'm sure you are right - the settings wouldn't have been matching .. although I didn't keep the project so I can't check (it was a jpeg still on video 1).
Ihave now tried again - with project settings matching the video clip file (DV PAL 25 fps 720 x 576), no jpegs, and the red lines are gone .. but the problem is still there when I drag a clip within the timeline (even if there's just one clip in the project). As mentioned in my edit, I see there is a known issue with Mac OS X Lion and PRE in the Timeline .. link here, although that says there are colour artifacts in the Timeline where I'm seeing the screen-image from above duplicated as the background, but I'm sure it's the same bug.
.. thanks again - helpful stuff I didn't know.
It could be something that iTunes does. I run Premiere Elements 10 on my OSX Lion and have never seen anything like that -- especially with DV-MOV files.
Have you tried capturing a DV clip from the Canopus into Premiere Elements to see if that eliminates the problem?
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I have started seeing more issues with newer iTunes, and Adobe programs recently. Do not know if Apple has changed something in iTunes, or it's just coincidental. Apple has not been friendly to Adobe programs for sometime, but mainly with regard to their programs on a PC - fewer issues with Apple stuff and Adobe on a Mac.
I seldom update my iTunes, just because of all those reports. As an aside, I also dislike the changes in the iTunes GUI with the recent versions, so only update, when the older versions cause issues, then I do a System Restore Point (on my PC), in case I have to roll back the iTunes.
Same thing with QuickTime on my PC. I stick with a version that I consider "known good," and only update, after I read good reports from others, who have moved to a newer version - still do the System Restore Point, just in case.
Good luck to the OP,
Steve .. I've now tried capturing directly into PRE .. unfortunately I'm still seeing the same issue.
Will try importing clips from different sources / with different video types - see if it's just limited to captured video(?).
.. cheers for the input.
Thanks for the feedback Bill ..
I have updated to the latest versions of iTunes and Quicktime .. so maybe there is something there interfering that is yet to be ironed out.
Sorry. I don't understand what's going on. Hopefully someone else will be able to help.
Is there a solution to this yet? It is VERY ANNOYING. The problem is still persistent a year later and I am running Mountain Lion.
Have you also, like the previous poster, updated iTunes and QT recently?
Have you contacted Adobe Tech Support? As we've advised, this isn't likely a problem we can resolve on this forum since no one else here is experiencing it.