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Elements (and the full version of photoshop) need a plugin called 'camera raw' top open raw files such as NEFs. It sounds as though you need a more up to date version which should be available for free at on the adobe website.
There are limits as to what the latest version of camera raw is that each version of elements can support. If your version of elements can't support a sufficiently new version, then you can convert to a 'DNG' file using a another free download from adobe and then open teh DNG with your version of elements.
Hope that helps.
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