How can i cut down the video's i've shot to only have the best parts in them for later use

first thing I was wondering was. I upgraded to the premiere user to where I have 20mb of storage but I take a lot of spearfishing video's and photo's and the 20mb is just about full. I see I can buy more memory but should I just get a external hard drive to keep all my photo's and video's and if I do that is it easy to get the materials that I need for me to create my new projects in premiere elements or should I just buy more memory. the second thing I was wondering is that I take a lot of spearfishing videos and each dive can be 15min long but only have about 4min of action footage that I actually use. so my question is after I download the video's from my camera can I go through them and extract the good footage and save it like that for me to use at a later date in my projects. it would save a lot of time and a lot of memory to be able to do it this way and if I can how do I go about doing it. thank you for all your help Cory

"I download the video's from my camera can I go through them and extract the good footage and save it like that for me to use at a later date in my projects."
This is the very definition of video editing, Cory! That's what the program is designed to do!
If you need some help with the basics of this program, I've created a free 8-part Basic Training series of tutorials for Premiere Elements support site Muvipix.com. That may be the best place to start.
http://forums.adobe.com/thread/537685
The most important step in any project is setting up the project settings to match your source video as precisely as possible. I cover this in part 1, so watch it carefully. I go into greater detail on setting up a project and capturing, editing and outputting video in my books, if you're interested.
As for Photoshop.com, I'm not sure it's worth buying more than 20 gig of backup space online at this point. You'd be better off investing in a good, large second hard drive for your media and project files. Save the online backup for your finished pieces.

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