Adobe Premiere Elements 4 - Rendering Problem

If I create small slide shows in Photoshop Elements 6 (ranging from 59 - 125 JPEG Still Shots with captions and/or added text)I can then send each slide show separately into Premiere Elements 4, make further adjustments and add title pages, I can then render and save as a project.
If I take several of these slide shows as a block and send them to Premiere Elements 4, I get a Premiere Elements window stating "Adobe Premiere Elements is running very low on system memory, please save your project and proceed with caution". So I click OK and save. I then go to render, after 2-4% rendering I get a video Preview Error window with various warnings including, "Out of Memory - Unknown Error" or "Disc write error:- verify drive connections, available disc space and disc access privileges. Then save close and relaunch project".
If I open a slide show project in Premiere Elements 4 and try to add a second slide show to it via the get media button - in the Add Media window I get Look in 4.0 and five folders appear (no icons for projects) I can then look in files of type and there is no listing for .prel files so tried "all files" and the icons for the slide shows appear. I then select a second slide show to add to the first and click open. I now get an Add Media Failure window which gives file addresses and the error reads "File format not supported/ one of the necessary components may not have been installed".
I have run the installation disc again to repair any installation errors but to no avail.
My computer is an Intel core 2 duo 3.16 GHz on an Asus P5Q P45M M/board with Gigabyte GF9600GT Graphics card.750GB HDD & 4GB Ram.
Hope somebody can help.
Bob Smith.

Most likely your photos are too large. We recommend using no larger than photos no larger than 1000x750 pixels in size. (The actual file size of the JPEGs has nothing to do with this, since JPEGs can be highly compressed.
http://www.adobeforums.com/webx/.3bb8822c
Resize your photos and you'll see a huge boost in performance.

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    <><><><><><><><><><><><>
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    Users/[Username]/AppData/Roaming/Adobe/Premiere Elements/8.0/SC/Presets

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