Is there something I can do to sort this out.
Sure. You ask your question or the proper forum where peopel who actually use the program can help you...
Moving this discussion to the Premiere Elements forum.
Photo Scaling for Video http://forums.adobe.com/thread/450798
-Too Large May = Crash http://forums.adobe.com/thread/879967
-And another crash report http://forums.adobe.com/thread/973935
More information needed for someone to help... click these links and provided the requested information