AVI Xvid and Premiere Elements 6......will I have problems?

Hello,
I am thinking about buying an Insignia NS-DCC5HB09 HD Camcorder which records to AVI(Xvid). I realize this isn't a high quality camera, but from what I've seen, will do as well if not better than my Panasonic PV-GS120 digital Camcorder.
I use Premiere Elements 6 on my Vista Home Premium Computer and I am curious if anyone can tell me if I will have problems using the video from this camera in my projects?

Many of the hi-def camcorders that are sold as being perfect for YouTube use MP4 compression (the Flip cameras, for instance). They're nice and small and cheap and are great for plug and play, but I don't recommend them if you want to do any video editing.
I also recommend against camcorders that save to hard drives, including the AVCHD hi-def camcorders. (I say this despite the fact that many people are using them.) They demand a tremendous amount of computing power in Premiere Elements. Maybe, in a few years, when computers are twice as fast as a typical quad core -- but not for today's under $1,000 computers.
My not-so-humble advice is to stick with tape-based camcorders, whether they are standard DV or hi-def. That means miniDV and HDV, basically. In fact, the Canon HV camcorders are used by a number of the people on the Muvipix site and they love them! Affordable and excellent quality.
In fact, go over to the Muvipix forum and check out the camcorder forum there. I'm sure you'll find lots of good information and friendly advice.

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actll
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64bit HP Laptop Dv7
Intel core i7
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updated Quicktime
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Rotary
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BadDrivers.txt file
Local Disk C
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Users
Owner
AppData
Roaming
Adobe
Premiere Elements
12.0
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http://www.atr935.blogspot.com/2014/04/pe12-premiere-elements-12-editor-will.html
ATR Premiere Elements Troubleshooting: PE12: Sign In Failure (Connect to Internet or Fix Computer Clock)
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