Please try the mentioned step:
1. Try to update the Video drivers. Go to start--> Device Manager-->Display Drivers--> Right click on your graphics card and select update drivers software--> Select browse my computer for drivers software--> Select let me pick from a list of device driver-->Select standard VGA graphics adapter and click on next. Restart your machine and try to launch the software.
2. Right click on Premiere elements icon and you will have an option Run as Administrator.
3. Try the latest update by going to help after launching the product and choose update or to manually update the software please refer the mentioned link: http://www.adobe.com/support/downloads/detail.jsp?ftpID=4653
4. Disable antivirus or firewall
5. Perform Selective startup. Please follow the instrauction to perform selective startup: http://support.microsoft.com/kb/331796
6. Disable screensaver\Turn Off Aero theme and try to launch the application
7. Try to create a new user account and launch the software
8. Please make sure that you have quick time installed
9. If you are using Windows Vista 64 bit then you need to run the application in 32 bit compatibality mode.