I know nothing about that camera, so I'm guessing. (Also, by responding it bumps to the top of the list! Others may know what you need.)
The "MPEG-2 4:2:2 50Mbps Codec (Canon XF Codec)" may be a little too advanced for the older version of Premiere Elements you are using. It may not be compatible with the newest version of PrE either! Canon is big enough that sometimes they go their own way with some things like codecs.
A second possibility is that if you can find the MPEG-2 files on your card, copy them to you computer with Windows Explorer or Apple Finder and then "Add Media" from "Files and Folders".
A third possibility is that, if it is a compatibility problem, you can convert the original format to something more universal with the shareware program called Handbrake.
If you're inclined, you could post a clip on DropBox (or equivalent) where I could download and try it with my computer.