William
I am not sure what you are doing on computer 2 now as compared to computer 1, but for now I will answer the question that you presented in your post numbered 8.
Let us say that you have files 1, 2, 3, and 4 imported into your Premiere Elements 7 Project Media. And, you have dragged each to the Timeline. Let us further say that each of these original files was imported into the program from a hard drive save location on the Local Disk C.
Go to the hard drive (C) location, make copies of the original 1, 2, 3, 4 files, and then paste them to a location on the Drive G.
In the opened Premiere Elements 7 Project Media, one at a time do the following.
1. Starting....Right click the thumbnail for file 1 in Project Media, select Replace Footage from the drop down list. Then browse to file 1 on Drive G, and, in the Replace Footage dialog, hit Open.
Please let us know if that is what you seek.
The objective seemed to be transferring a project from computer 1 Premiere Elements 7 to computer 2 Premiere Elements 7. From what you wrote in a prior post, the problem seems to be in the project from computer 1 Premiere Elements 7. And, from what you wrote, its sounds like the issue is project specific since you do not run into problems there when you start a new project.
Please review the Adobe document on damaged projects to see if we can spot anything in it that may hold the answer to your issues in computer 1 Premiere Elements 7.
Troubleshoot damaged projects | Adobe Premiere Elements
Thanks.
ATR