Premiere Elements 11 crashes during playback after adding PiP

I have Adobe Premiere Elements 11, up to date, and Windows 7 home up to date. This is a new problem that just started with my most recent project. I have done these types of edits and PiP's many times with success with the same type of source video formats, etc.
The problem: I add a small clip of video over the main video timeline as Picture in Picture. It adds to the timeline successfully and I can even play it back ok (before rendering). If I add a transition to the front of the PiP, it will crash during playback (pre-render). Or, if I render the timeline before adding the transition, it will also crash during playback once it gets to the PiP.
I tested PiP with still pictures and that works ok, it only crashes on video PiP. I have tested different video formats (from GoPro and from Panasonic camcorder) with the same results (crashes). I have uninstalled Adobe Premiere as well as Quicktime and re-installed them, same results. I am quite frustrated with the constant crashes, especially since I have done a dozen or more videos the same exact way using the same cameras and same types of video files.
Any help is appreciated.
Justin

So I created a new project using the project preset "DSLR 1080p30 @29.97". Everything worked fine in that project using the same source videos and doing PiP (tested with both methods).
I opened the project that was giving me problems and the PiP worked when using your approach of dropping the PiP clip onto Video 2 then scaling it down. I then deleted that PiP and re-added it the way I was doing it before, and it crashed the first time I tried to play it back.
I closed down Elements and again tried to reproduce the crash the same way, but this time it worked and did not crash...I tried multiple times to reproduce the crash, sometimes it would, sometimes it wouldn't...
So, I don't know exactly what the problem is. Lastnight I could reproduce the crash every time by either rendering the PiP or adding a transition to the front of it (then playing it back), every time it would crash. Now it is behaving differently.
At any rate, I will start using the correct project settings going forward and know that I can PiP using the other method as well. Maybe the project that is giving me problems is just corrupted or something, I'll toss it an start anew.

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    The answer was QuickTime.  I changed version down to 7.3.1 which I got on www.oldapps.com and I am finally able to use Premiere Elements 8.
    Glad that you got it sorted out.
    It now seems that Apple has had two recent series of QT upgrades, that just kill certain Adobe applications, the 7.4.x and the 7.6.x. Not sure what the deal is, or why the QT upgrades are not tested with Adobe products, but it seems that both NLE's, PrPro and PrE, plus AfterEffects can be adversely affected. Some have put forth a conspiricy theory that Apple wants to kill use of PrPro on the Mac, so Mac-users will go with some form of Final Cut. However, this does not play with me, as AfterEffects seems to be affected and there is just no competition (from Apple, or others) to replace it. It is used on many, many Mac machines. I think that Apple is trying to improve QT, and is just not testing their updates on machines with enough software, especially from Adobe.
    Still, with the ability to roll-back QT, the user does have a workaround. Personally, I hold off upgrading QT, until enough Adobe-users report that all is stable.
    Good luck to all,
    Hunt

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