When the search is complete, you'll get a long list of paths pointing to folders where pictures were found. A message below the folder list shows you how many files were found. Clicking on a folder in the list will show you small previews of those images along the right side of the dialog box. Chances are, most of the folders contain images that are not personal photos and which you don't want to import. After reviewing the list, Ctrl-click to select each of the folders containing pictures you want to import. Click Import Folders, and only those you selected will be imported.
When it's done, you might get a list of files that were not imported, either because they were duplicates or because the file was damaged. All you can do here is scan through the list and click OK. If you've ever had pictures sent to you from another Photoshop Elements or Photoshop Album user, you might see a screen for importing attached tags. If you're just getting started with the Organizer, you can skip over this screen by making sure no boxes are checked and clicking OK. Importing tags can be useful, but when you're just starting out you'll want to establish your own tags first.
Finally, Elements will display a dialog box telling you that the files you just imported are the only ones being shown. At this point it may be all photos in your catalog. If you need to import photos from CD or DVD, continue to the next page for instructions.
--> Importing Photos from Files and Folders

