Under the file section of this page, click Browse to choose the folder where you want you camera photos to go. You can always choose a different folder at the time of import, but if you choose the top-level photo folder (such as My Pictures) on your computer, you'll be at a good starting point and won't have to drill down as far to select a different folder.
If you like, you can check the "Create Subfolder Using Date/Time of Import." I prefer not to use this option and I just create my own folders with more descriptive names, or I import directly into existing folders under my main pictures folder. Elements 3 keeps track of the Date and Time of import automatically, and you can browse your photos by import batch in the Photo Organizer even if you don't use this option.
