You should not have to convert video from a Canon camcorder to edit it in Premiere Elements. It should work as is.
What model of Canon is this camcorder? If it shoots in more than one mode, which mode did you shoot in?
We can give you specifics once we know more specifics from you. But parts 1 and 2 of my 8 part Basic Training tutorial series shows you how to properly set up a project and get your video into it.
I shot it in movie mode. It says MF on the screen as well as PF24. It also says FXP. Are these indicators that they would not transfer well?
This is the Canon Vixia HF100 from 2009.
Actually it says cine mode but also movie mode, I'm guessing they are interchangeable
If you shot your video in 24p, you're going to have problems using it in Premiere Elements.
But if you just shot in FXP mode, you should be able to use the video in Premiere Elements, if your computer is powerful enough to work with it.
Just set up your project for Full AVCHD 1920x1080, as I show you in part 1 of my tutorials, and then connect your camcorder to your comptuer via USB and use Premiere Elements' Get Media/From Flip AVCHD and Hard Disk Camera tool to download the video from the camcorder into your project, as I show you in part 2.
Just don't shoot any video in Cinemode 24p or Progressive mode 30p. Shoot any video you plan to edit in Premiere Elements in 30i only.
I'm watching your tutorial but I have the premiere 10 and it doesn't have the option of new project
It has "Organizer" and "Edit"
After clicking edit, I try to use File->New->blank file
but it doesn't give the option to choose project settings.