sherveveyj1
Premiere Elements 8.0/8.0.1 is a 32 bit application running in the 32 bit compatibility mode of the 64 bit system and as such has the limitations of 32 bit, namely, maximum supported installed RAM = 4.0 GB of which typically 3 GB or less are available. Many found that the program does not have enough resources for serious AVCHD editing for medium to large size projects. Some resorted to converting the footage to the less resource demanding MPEG2 1920 x 1080i while others experimented with a proxy method which used to be in FAQ.
http://forums.adobe.com/thread/486598
http://forums.adobe.com/thread/390605
Are you shooting 1080p60 with your Panasonic DMC-FZ200. How do you intend to export the footage?
The advanages of upgrading to version 11 for your situation include gaining a 64 bit application running in a 64 bit system of Windows 7 or 8 which will make available more of the computer resources. And, version 11 is the first to offer the 1080p60 and 1080p50 project preset. You might want to look at the free 30 day tryout of the program from Adobe to determine if it is something that would work to your advantage.
If you wish to pursue making due with what you have, please let us know and more information on working with AVCHD in Premiere Elements 8.0/8.0.1 will be discussed in depth, including workarounds.
Thanks.
ATR