I'm not sure but it sounds a lot like the question I posed to the forum a little later today. It may be that the newer versions of PSE are not compatible with transfering all the Categories, Sub Categories and Tags from versions up to PSE 10. I am presently using PSE 10 because I couldn't figure out how to save all the organization I have put into Elements over the past 10 years or so.
I'm hoping for an answer to my question.