I bought and downloaded Elements from the app store. Why are most of the items prayed out?

Why is it that Adobe Photoshop Elements 12, downloaded via the App store shows all items on the file menu grayed out?

No, you bought Photoshop Elements Editor when you bought it from the app store. No organizer. You don't import photos, merely use File>Open to get them into the editor. You can't access your iphoto library because that's not how you do it. The iphoto library is a proprietary database for iphoto's own use and poking around in it from outside iphoto is the fastest way to corrupt it and lose all your pics. If you use iphoto you have two choices:
1. Set PSE as your external editor in iphoto and send the photos from there. Save, not Save As and iphoto will remember your original plus the last saved edits, although you must lose the edits to revert to the original again. If you see the Save As window, it's not going to work. You may need to set the PSE prefs>saving files>on first save to Save Over Original to get this working.
2. Export the photos from iphoto, edit the exports and save them, making all the changes you want, then import the edited pics back to iphoto as new files.

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