what is the purpose of the directory "Encoded Files " ?

[Angel36590037hr08]

The directory path  is :   Adobe >  Premiere Elements  >  Premiere Projects  >  Encoded files

On what directory are saved the video projects ?  (prel. files)

[Bill Sprague]

The .prel files are stored where you tell it to store them when you start and name a new project.   Someone may have to correct me, but I think encoded files are temporary preview files that make the working process of editing function.  

[Ann Bens]

Default: Documents > Adobe > Elements > 24.0

[Angel36590037hr08]

can I delete the contents of the directory "Encoded Files" without losing essential information ?

[Bill Sprague]

I'm not sure, but I think deleting the Encoded Files is not a problem.  So, I tried it.  I deleted the contents and then reopend two projects.  The contents of Encoded Files was recreated for both projects.  

Be sure you have backups, but then try it on your own system.  

[Ann Bens]

Mine are empty: what extension do these files have?

[Angel36590037hr08]

all the files on my Encoded Files directory have a prel.  extension.  

[Bill Sprague]

all the files on my Encoded Files directory have a prel.  extension.  

By @Angel36590037hr08

Don't delete .prel files!   Those should be "master" project files.  Can you post a screen shot of your file structure?   

[Angel36590037hr08]

The directory path is : Documents >  Adobe > Premiere Elements > Premiere Projects
and inside Premiere Projects I have the directory Encoded Files and at the botton a list
of prel. files,  which also are duplicated inside Encoded Files

[Bill Sprague]

Mine were empty too.  Under Encoded Files were two folders named the same as projects.  Both folders were empty.