Adobe Premiere Elements 10 running sub-par or not?

Question

I am new to Adobe Premiere Elements 10 and I have a lot of questions after using it for the past 4 days and getting aquainted.  First off here are my system specifications:
HP Model h8-1214, 10GB PC3 10600 DDR3 SDRAM, 1.5TB hard drive, AMD FX 6100 6 -Core processor, AMD radeon 7450 HD graphics, Windows 7 64 bit.
     This is supposed to be a top of the line computer and I was told it could handle video editing without any issues or hold ups after all best buy does not even carry higher end models then this one.  I am currently working on two projects the first is a re-edit of 1 hours worth of Mini DV footage already edited in windows movie maker.  The other is a 3 minute compilation of videos off my ipod nano.  All the video files are stored on a 500 GB Toshiba USB 2.0 external hard drive.  I have to say I am already experiencing hang ups, slow load time, NOT RESPONDING, and choppy footage when entering effects and titles.  Also just as a test I initially put 1.5 hours of 960P high deff footage off my GoPro and threw in some effects, transitions, and menu options to see if Adobe and my computer could handle it.  It did ok but it took almost 2.5 hours just to render and burn a single DVD. 
     I am used to similar crap on my wifes 400 dollar laptop but what do I have to buy for this thing to get it to just not stutter and work right.  I am very angry at this point since I was excited that I could finally get a computer and not be held back by poor performance as I have been in the past.  Any advice would be appreciated.

Answer 1

Finding out exactly what is inside your video files will help you determine the correct settings
Read Bill Hunt on a file type as WRAPPER http://forums.adobe.com/thread/440037
What is a CODEC... a Primer http://forums.adobe.com/thread/546811
What CODEC is INSIDE that file? http://forums.adobe.com/thread/440037
Report back with the codec details of your file, use the programs below... a screen shot works well to SHOW people what you are doing
For PC http://www.headbands.com/gspot/ or http://mediainfo.sourceforge.net/en
For Mac http://mediainfo.massanti.com/
http://blogs.adobe.com/premiereprotraining/2011/02/red-yellow-and-green-render-bars.html
Once you know exactly what it is you are editing, report back with that information... and your project setting, and if there is a red line above the video in the timeline, which indicates a mismatch between video and project
>thought it would work like an up-convert to higher resolution
No, you need to create a project that matches what you are editing