How do I stop jerky video in timeline of premiere elements 12?

I have just purchased Adobe Premiere Elements 12 (this software is new to me but I have watched a couple of videos). My video clip is slow and jerky in the time line and yes, there is a yellow line through it and no, rendering does not help. The clip plays fine from the window. I do not want to return the software but it is no use to me the way it is. I have Windows 8 Pro, Intel pertium Dual CPO E2180 @ 2.00GHz with 3.00GB RAM, 32-bit OS, x64-based processor.  I really need help.

GmaShack
I am not in a position to comment on the 64 bit processor in the 32 bit operating system. It probably is an advantage than a disadvantage, yet you still have a 32 bit operating system which is still limited by maximum supported installed RAM = 4 GB of which typically 3 GB of that are available. Is it at all possible for you to go all 64 bit, with Windows 7 or 8 64 bit operating system*? If so, you would gain a big advantage having Premiere Elements 12 as a 64 bit application running in the 64 bit operating system. But, even then you want to get the installed RAM to at least 4 to 8 GB.
But, for the here and now, check the motherboard to see how many RAM slots you have and how much it can accept in the way of RAM modules. If you stay with the 32 bit operating system, total 4 GB RAM installed. Or is that what you have now...that is...is your 3 GB RAM reported installed or available RAM? Do you have 4 GB RAM already installed?
What are the properties of our source media for your project...standard definition, standard or widescreen, or high definition 1280 x 720 or 1920 x 1080? What is the typical duration of the projects that you intend to create.
And could you clarify what you mean by
My video clip is slow and jerky in the time line and yes, there is a yellow line through it and no, rendering does not help. The clip plays fine from the window.
I would agree with Ann Bens, that your machine is underpowered for HD tasks. But, you might be able to handle short term HD projects as well as SD projects with tight control over resources, detouring scratch disks et al to an external hard drive for one aspect of the computer resources issues of available RAM and free hard drive space.
Then we should not forget the usual drill of is your video card driver up to date according to the web site of the video card manufacturer?
And, we need clarification on "The clip plays fine from the window." What window?"  Where is the clip slow and jerky? Please distinquish between Edit Mode monitor, Preview Window within the program and playback of the export in a player.
And, we should rule in or out whether the project is set up correctly, that is, what project preset is being selected and does it match the properties of the source media??
Please review the above considerations. Then we can try to put the discussion exchanges into perspective to help you move forward in your Premiere Elements 12 projects.
Please do not hesitate ot ask if you need clarification on anything that I have written.
Thanks.
ATR
*For Premiere Elements 10, 11, or 12 to be a 64 bit application on Windows, it is written that it must be running on Windows 7 or 8 64 bit specifically. That means to me operating system, not processor. Until proven otherwise, regarding your 32 bit operating system with a 64 bit processor, that is my take on your specific situation in this regard.

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