Windows7 issues with Adobe Premiere 3.0

I have an adobe photoshop elements 3.0 program that works great with windows xp but when i want to run the program on windows 7 it lags, ive tried to run the program in windows xp compatibility mode, and it still lags.

When i went to install the program during the setup is said it couldnt install Windows Media Format 9 Series Runtime Does anyone know of an aterniative media player runtime that would work just as well?

If its not the runtime i have no idea what is causing the lag and choppy look in the program.

My computer in running windows 7 professional with 8 gb of ram.