Ok, to answer your questions ATR:
1.) Windows 7.
2.) Sony Handycam.
3.) .mpg files.
4.) I am trying to play the video from the elements organizer 13.
5.) I have QuickTime installed.
6.) I have pse13 and premiere 13 installed.
7.) I have administrative privileges.
History, I had Premiere Elements 10 and all of the videos played file in both the organizer and editor. When I upgraded to 13 they stopped working in the organizer. After reading your post I tried editing one of the videos and it brought me to an encoder activation page. I did that and now it plays the video without sound. So, we are half way there.