Since other titles suffer such issues I fear the answer is to go with systems that are dedicated to the task at hand or with systems that you don't have to do your own tech support. Also, did you try this on an Apple machine?
Seems like bugs are the accepted norm!
I created a DVD using video captured by my Panasonic PV-GS320P camcorder using the USB input to Adobe Premiere Elements 3.0.2. Two days later I tried to make another DVD and the blasted program said Device Offline after that entry blinks three times. The device status in the settings is actually shown as "active"--I think is the term-- and I can control the camcorder from the program. I have had this problem before and going through all of the settings usually corrects it but not this time. Finally, I uninstalled Premiere Elements and removed all traces of it from my registry and all files and folders I could find on C:. I reinstalled it and it worked fine. What a mess!
I have no intention of buying newer version of Premiere Elements.