Premiere Elements 7 crashes when I start to edit clips

I have downloaded Premium Elements 7 and installed same. I have taken a small series of 12 clips to try the software, into "new project (all 12 clips).
I then took the clips into the editing mode, but after dragging the 3 clips the programme crashed.
This has happened several times. Each time a menu pops up and says "Adobe has stopped working. A problem has caused the programme to stop working correctly. Windows will close the programme and notify you if a solution is available. CLOSE."
I have Vista Home Premium, using a 2GB dual core intel with 160 GB harddrive. Can some one tell me what is wrong please

Dear Steve,
Thanks for the prompt response. I am having major problems. As you suggested I activated quicktime and then updated this. Then my problems got worse as I was unable to find the clips which were originally stored in Adobe photoshop so could not obtain them. I decided to uninstall PREMIUM ELEMENTS and re-download after restarting my PC. Unfortunately it will not install. it aborts part way throughthe installation
Install shows,  C:\Program files\Adobe\Adobe Premiere Elements 7.0\   then Next, then Install, which I click on.
Part way through this install procedure a menu appears
Menu Error 1311. Source file not found and C:\User\Admin\App Data\Local\Temp\wzde 24\data1.cab. Verify that file exists and that you can access it.  Retry and cancel
Checking through the files the last one is wzde 24 but no data1.cab file.
So what else am I not doing or doing wrong.
Thanks for your assistance
Barry
PS I have 23 GB on C and a full 69 on D
Video is a Sanyo Xacti an MP4 system
Downloaded with still pictures to Adobe Photoshop and then Pics into one folder and videos into another folder and to sub folders 
Date: Tue, 26 May 2009 09:42:35 -0600
From: [email protected]
To: [email protected]
Subject: Premiere Elements 7 crashes when I start to edit clips
1) What are you using for source files? Photo? Video? If video, what type of camcorder did the video come from and how did you get it into your computer?
2) How much free, defragmented space is on your hard drive?
3) Is your operating system up to date? (Manually going to Windows Update and adding the hidden or custom updates) Do you have the latest version of Quicktime -- which is critical for running this program with any stability (per the FAQs to the right of this forum)? This is particularly important when running Vista.
http://forums.adobe.com/thread/416585?tstart=0
>

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