Do i need to render videos in PRE7?

Hello, i am new to Adobe Premiere Elements 7
I was wondering, everytime i add a video to my timeline and preview it, it lags for some sort of reason.
After searching, people suggested that i render the video by pressing the 'enter' key.
Do i really need to do this if i want to preview the video without any lag?
When rendering it:
Takes up space
Takes a while to render
Thank-You
Please Reply.

My guess not knowing the format and source of the video, it could be a combo of things that may be at fault.
The speed of your CPU.
Firmware updates for video and system performance.
A fragmented disk.
System performance tuning.
Check the FAQ's at top right of page for guidelines on system tuning.
If not there already, take one of the clips and convert it to DV-AVI outside of PE, then import this into PE and view.
(You can use Windows Movie Maker (WMM) for the conversion).
You should see a marked improvement in Monitor view with DV-AVI.
If you don't, your overall system performance may be so poor, that it doesn't help, even with DV-AVI...

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