How are you adding the files to the program? And have you ensured you have the latest version of Quicktime, per the program's requirements?
First, you should start a new project and select for your Project Settings, DSLR and whichever resolution of video your camera is set to record. (Make sure you DO NOT shoot in MJPEG-AVI!)
It's very important that your project settings match your source video! A mismatch can result in your wasting a lot of time on something that won't work.
Then plug your camera into your computer via USB and open Premiere Elements' Video Importer by using Get Media/From Flip AVCHD or Hardk Disk Camera to browse to and import the video into your project.
As I've been looking at the specs online, it appears that this camera might ONLY SHOOT in Mjpeg-AVI format. If that's the case, you're going to have problems no matter what you do.
Most higher-end DSLRs shoot video in an AVC format that Premiere Elements is designed to edit. MJPEG is a challenging format that you may end up having to edit in Windows MovieMaker. Premiere Elements has a heck of a time with it!
Install Quick Time and then try
First, you need to find out exactly what is inside your video
Read Bill Hunt on a file type as WRAPPER http://forums.adobe.com/thread/440037
What is a CODEC... a Primer http://forums.adobe.com/thread/546811
What CODEC is INSIDE that file? http://forums.adobe.com/thread/440037
Report back with the codec details of your file, use the programs below... a screen shot works well to SHOW people what you are doing
For Mac http://mediainfo.massanti.com/
Once you know exactly what it is you are editing, report back with that information... and your project setting, and if there is a red line above the video in the timeline, which indicates a mismatch between video and project