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or is all the processing done by the CPU. What is an entry level card that would handle video processing adequately?

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As far as I can see, Adobe do not (or have not announced) support for CUDA with Premier Elements, which means that you will not see a speed increase with different graphics cards.

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This depends on which version you're using. I know GPU acceleration is supported in the newer CS4 products.

From the above link:

Note: For details regarding GPU support of individual Adobe products, please visit that product's system requirements page on the Adobe website.

They also show a list of compatible video cards. By entry level, it depends on if you're referring to desktop GPUs or workstation GPUs. Typically workstation GPUs are much better at this sort of thing. An entry level workstation GPU on their list would be the Quadro FX 1700 or the FireGL V-Avivo 5600.

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+1 nice answer, but what is the difference between desktop and workstation? –  whitequark Jan 22 '10 at 15:38
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Hardware wise, there is a difference with regards to the ASIC used. Functionality wise, the main difference is that workstation GPUs are built to handle high loads for longer periods of time. In other words, your system will be much more stable when doing things such as 3d rendering. –  John T Jan 22 '10 at 15:42
    
So you're saying if I play a high-end 3d video game (which puts a heavy load on the GPU) for too many hours, the average desktop video card will burn out? Seems unlikely to me... –  davr Jan 22 '10 at 16:53
    
@davr, the stress caused by the game is not the same as 3d rendering. –  John T Jan 22 '10 at 21:01
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