Pre-rendering
Once you have opened your video in Premiere Elements, press Play. If the playback appears "jerky" in the monitor window, or if the timeline is red instead of green, you should pre-render your video clip.
To pre-render, select Render Work Area from the Timeline menu or hit the Enter key.
After the video has rendered, a green line will replace the red line to indicate it is OK to play. The clip should now play smoothly.

Removing ghosts
By default Premiere Elements blends frames together to make the video smoother. However, this process may introduce unwanted duplicate images called "ghosts." This can be eliminated by turning Frame Blending off.
To turn blending off, right click on each clip in the timeline, then un-tick Frame Blend in the menu that appears.
If you have added effects to your video you may need to render the clip to get a green line (see above).