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What model of camcorder is your video coming from and what format and resolution is it?
Have you ensured that any audio files are in the form of WAV files?
When you started your Premiere Elements project, which project settings did you select? If you've selected the correct project settings for your video there will be NO red lines above your clips when you add them to your timeline. Is this the case with your project?
I'm using an online video converter which converts YouTube clips to MP4 files (audio 128 kbps; video bitrate 224 kbps).
My audio is an MP3 file and I wasn't sure which project settings I used so I just used the default settings after the install which I believe was AVCHD LITE720s24.
I'm extremely new to video editing/digital videos but I've watched a few lynda.com tutorials through my university.
This video and that audio are not going to work well in Premiere Elements, unfortunately.
Your best bet is to use the project settings for Flip Mino HD to edit your video. And by all means convert that audio file to a WAV! (The free download Audacity will do it.)
You're still going to have to render often as you work. (Press Enter whenever you see red lines above the clips on your timeline. When they're rendered they'll turn green.) You don't say how fast your projecessor is -- but you should get pretty decent editing performance with this video if you've got a quad core or i7 processor.
And check out my free 8 part Basic Training tutorials. They cover the relevant aspects of the basics possibly better than Lynda's tutorials.
Awesome, thanks a lot for the pointers!