Premiere Elements 9 on Mac - project size limitations?

About a year ago I purchased Adobe Premiere Elements 9 with a view to self editing of underwater video projects.  At about the same time I purchased a Sony Handycam HDRCX 700V video recorder.  This is HD video and seemed to be the way to go.
I quickly realised that the laptop computer I was planning to use just did not have enough grunt to deal with the high defination video.
So recently I went and purchased the highest specification desktop Mac machine I could lay my hands on.  Apple iMac 27 inch i5 3.1GHz QC, 4GB RAM, 1TB hard drive fully expecting my problems to be over.
I have now started putting together a sizeable project of video footage taken on a Red Sea scuba diving trip.  I have the clips all in the timeline, cut down and sequenced but want to start the actual editing process with respect to transitions, video clip effects, audio etc.
The new computer is now starting to fall down.  While the computer itself remains standing the Adobe PE 9 software keeps crashing.  When trying to add a second piece of video into a second timeline (I want to crop and have them play at the same time) the software crashes.
My question is what the practical limitation is for a size of a project?  I am hoping to end off with something around 60 minutes but it would appear as if the software (together with the computer) is not capable of handling this.  Any comments?
I have checked to see whether all the Mac software is up to date (yes it is) and all the PE9 software is up to date (yes it is).
Are the specifications good enough?  What more can I do?
Any help will be most appreciated.
Kind regards
Stevenmac

Your camcorder shoots in a variety of formats, and not all of these formats are supported by Premiere Elements.
So first you must ensure that you do not shoot in 60p! Loading 60p high-def video into Premiere Elements can cause all sorts of problems. Shoot video you plan to edit in Premiere Elements in 60i and 30i only.
Beyond that, you can shoot in 1920x1080 AVCHD or 1440x1080 AVCHD. Despite these numbers, these two formats are the same essential resolution! The latter just uses more traditional TV pixels.
But whatever you shoot, you MUST ensure that your Premiere Elements project is set up to handle that footage! So whatever you're shooting, when you start your Premiere Elements project, select the AVCHD or Full AVCHD setting that matches your video specs. Then attach your camcorder to your computer and use Premiere Elements Get Media/From Flip, AVCHD and Hard Disk Camcorder to import the video from the camcorder to your computer.
If your project specs match your source video, you should not see red lines above the clips on your timeline until you add effects to them. Is that the case in your project? When they match, you should have excellent performance.
Parts 1 and 2 of my free 8 part Basic Training tutorials on Premiere Elements support site Muvipix.com will show you how to set up a project and import AVCHD footage.
http://forums.adobe.com/thread/537685

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