Just upgraded to yosemite on macbook pro and now photoshop12 fails-whats up with that?

locks up—have to go to force quit to get control of my macbook—this is distressing

First of all try deleting the preferences.
If you have once run PSE it is necessary to also delete the saved application states.
So you would need to go to your user library and delete:
com.adobe.PhotoshopElements.plist
Adobe Photoshop Elements < version > Paths
Adobe Photoshop Elements < version > Settings
com.adobe.Elements Organizer. < version >.plist
com.adobe.ElementsOrganizer< version>.plist
and any lockfiles with the same names, then (if you’ve used Elements in Yosemite) go to Saved Application States (at the same level as preferences) and delete any for PSE, then repair permissions and launch PSE again.
To see the User library, click the Go menu in the Finder and hold down the Option key and it will appear below the little house for your user account.
Also, if you're using a trackpad, try a mouse instead.

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