Photoshop Elements :: Can't Process Multiple Files On One Of Three Catalogs

After getting straightened out about getting my catalogs in order, which I've done, I've run into another problem. I have three catalogs one for People, one for Things and one I call Workplace where I try out things that are new to me so I don't mess up my main catalogs.
 
I've straightened out the files in my Things catalog. I have one catagory that contains images of autograph book pages from the late 1800s. Those scans were done in JPEG some time ago. I've tried using multiple processing to change these 55 images to psd in the original file to be consistent with the rest of the catalog. Each time the process fails.
 
In order to see what the problem might be I have copied the catagory file into both of my other catalogs and have been able to process the catagory file back into itself as psd. I have also created another small file in the Things catalog and tried to convert it and had the same result. The warning info box that appears when copying back into the same file states that the original files will be overwritten. The psd files do not overwrite the jpg files. They are added to the original file. That may be the way it is intended to be. That's not a real problem.
 
The real question is why can't I process multiple files in the original catalog. I have looked at the error file and, although I don't know much about most of it, I found the following in the first part of the file.
 
crash exception="EXCEPTION_ACCESS_VIOLATION"
 
I run XP SP3 and PSE 8. I am a single user with administrator rights. I find no mention of a  permission filter in the PSE 8 program.