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Sorry for posting about an old version, but: Did Adobe remove a bunch of effects from Premiere Elements at some point? This version has very few worthwhile effects and no blue/green screen capability as previous versions did. Thanks.
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Maybe Steve's YouTube video will help you. https://www.youtube.com/watch?v=hjW4UGBZCCI
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Are you on a PC or a Mac? The Mac version does not include Chroma Key or similar effects. But the tutorial Bill recommended shows you what to do if that is the case.
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