Premiere Elements 10 slow on Mac

Hi,

I installed Premiere Elements 10 on a brand new computer, but it runs extremely slow.

Even just playing one short 30 second clip (un-edited, the original file) causes lagging.

I made sure that the project is up to par with the camera settings and that there are no red lines above the timeline.

These are my computer specs:

MacBook Air

Processor  1.7 GHz Intel Core i7

Memory  8 GB 1600 MHz DDR3

Graphics  Intel HD Graphics 5000

Software  OS X 10.9.3 (13D65)

As I said, it is brand new so I don't have almost anything on it but PE10 and the files I need to edit for work, so I don't think it should be a space issue.

I'm not much of a computer wiz, so I might be missing on some important info I need to share.

Please let me know if you need to know anything else.

I really appreciate the help and sorry for the inconvenience, but I couldn't find a solution anywhere else on-line.

Thank you!