This problem with AVI import seems to be the result of a missing or improperly installed DirectX filter on your PC, which is needed for Premiere Elements to import certain multimedia files. If you have a Hewlett-Packard PC, you may need to download and install an updated Realtek High Definition audio driver from HP's web site. If your computer is from another manufacturer, it would be a good idea to be sure you have the latest driver for your audio system. If this does not help, please try using this audio compression with your AVI files: MP3 (MPEG 1 Layer 3) with a Frequency of 44100 Hz and a Bitrate of 256 Kbps.