Kimberly
If a recent Canon utility was going to supply a driver which would allow the Canon to be recognized in Premiere Elements as a webcam, then a Canon webcam should be listed as a choice along with the webcam built into the computer in the Capture Window.
I am not sure if the extrawebcam software is going to make all that happen. Have not been there and used that. There are many recent downloads of great programs that come with unwanted and browser disturbing carry alongs.
Did you get a chance to look at using Windows Movie Maker Webcam feature?
ATR