This message is displayed when the video adapters on your computer use the default (generic) display drivers supplied by Windows (Vista and later). The default drivers are good enough for display. However, for Adobe Premiere Elements to use the full functionality of your video adapter for editing, install the manufacturer supplied driver for the card.
You can face issues with video playback if you do not have the correct display driver for the video adapter on your computer.
For more information on video adapters and display drivers, see http://windows.microsoft.com/en-US/windows-vista/Troubleshoot-monitor-and-video-card-problems
Note: This error message is displayed after every fifth launch of Adobe Premiere Elements.