Also, what model of camcorder is your video coming from and what format is it in?
When you started your Premiere Elements project, which project settings did you select? Selecting the correct project settings for your source video is vital to a successful video project. When you've selected the correct project settings, there will be no red lines above your clips when you add them to your timeline. Is this the case in your project?
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Welcome to the forum.
Along with Steve and John T's questions, you might want to take a look at this ARTICLE. It starts with a general checklist of things to insure that PrE works best, then goes into some links for tuneup tips, and finally into some links to help troubleshoot issues, which rather work up in "degree of difficulty."