Moved Premiere Elements 10 project Error: "Project is not compatible with current version of Premiere Elements"

After moving an entire client folder from an external hard drive to an internal one, the client's video, created in adobe premiere elements 10, will no longer open in adobe premiere elements 10. It appears to be loading the project, and instead of completing, the following error message is displayed: "The project is not compatible with current version of Premiere Elements."
The same thing occurs when attempting to open the archive files.
New projects, and unmoved projects behave properly.
Moved projects receive this error.
I'm running Windows 7 Home Premium SP1 on a solid state drive (SSD) (c:/), where premiere elements is installed
My documents, including the project I need to work with are on my "storage" drive (HDD). it is (f:/)

txnoda
Archiving Aspects of this.....
First let clear the matter of the "archiving" as a life saver.... We do not appear to be on the same wave length.
a. I am talking about File Menu/Project Archiver with its Archive project and Copy project options. This feature is a safety net to save you when you
inadvertently disconnect source media from the project file. With the Archive option (Trimmed Folder result), you get saved to the computer hard drive (safe keeping) a copy of the project file plus copies of the media that were taken to the Timeline. With the Copy option (Copied Folder result), you get copy of the project files plus copies of much more.
b. Instead, you appear to be talking about "archiving" in the context of AutoSaves. AutoSaves are saved snapshots of the project at various phases of the edit. They suffer from the same shortcomings of the original project that has been disconnected from its source media.
When you import media into a project, all you get are copies of the originals in the project. But, those copies need to trace back to originals at the locations where they were when first imported into the project. Moving, renaming, deleting files/folders that went into the project after the project save close leads to some very time consuming messy situations.
What to do....
If you can, put everything back the way it was. If not.....
Let me emphasis some factors..
You wrote
After moving an entire client folder from an external hard drive to an internal one, the client's video, created in adobe premiere elements 10, will no longer open in adobe premiere elements 10. It appears to be loading the project, and instead of completing, the following error message is displayed: "The project is not compatible with current version of Premiere Elements."
Here you mention specifically "client's video". Later you detail with .mod files converted to .avi. What kind of .avi? If you have converted to AVCHD.avi or H.264.avi, they have been found not to be compatible with Premiere Elements. You should not be able to import them into any new or old project.
From what you described, I am envisioning
"Video" Folder
which contains 2 folders named
"Timestamped Folder" with .avi files
and
"DVD" Folder with the project file (project.prel)
The project file has many files generated automatically in the course of it workflow. Where do you have them going?
(See Premiere Elements  10 Edit Menu/Preferences/Scratch Discs). If you have the Scratch Discs directed
"Same As Project", then we would expect all those files to be going to the DVD Folder in the above scenario.
If we could open the project and get greeted with some "Where is the file.....?" messages, that might give us some hope.
But that is not the case.
Consequently from what you have said, I am suggesting that the path of least resistance is try to recreate the "before".
Please review and consider.
ATR
Add On...Not sure if it will assist in the matter, but the following is the link to Adobe's document related to troubleshooting
damaged projects.
Troubleshoot a damaged project file | Adobe Premiere Elements

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