Premiere Elements 4/Photoshop elements 7 - grayed out menu

I am a total newbie with no artistic skills at all. I am just trying to create a DVD using ONE clip.
I want to create a still shot from the clip to use as a menu background.
According to the Premiere Elements 4 help screen I should just have to click on the camera and then have the OPTION to edit the image in Photoshop Elements. For my setup this option is grayed out. All I can do is save the image as a .bmp (bitmap).
Can someone tell me why this is? Did I do something wrong in setup?
Is there a good book for PE ver 4?
thanks
Mark

Thanks Barb and Steve
You have both answered my question.
Now if I wasn't so intimidated by the software I might try it
Do you think it would make sense to upgrade to version 8 of both? I am thinking of upgrading to a new PC since this software is such a resorce hog!
I really need to get some books altho I read the PSE 7 missing manual and it described features that didnt work on my PC!!
AGH!!
Mark

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Insanity is hereditary, you get it from your children
If this post or another user's post resolves the original issue, please mark the posts as correct and/or helpful accordingly. This helps other users with similar trouble get answers to their questions quicker. Thanks.

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function(){return A.apply(null,[this].concat($A(arguments)))}
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Win 7 64bit

Matze S
Premiere Elements 11 on Windows 7 64 bit.
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ATR

Premiere Elements 4/Photoshop elements 7 - grayed out menu

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