I replaced the plug in and it works GREAT!!!!
For those that don't know.. I had the RAW plug-in 4.2. Canon CR2 files require at least 4.6 RAW plug in. Here's how to find out.
Go to your Elements (6.0 in my case) and then go to Help >> About Plug-In >> Camera RAW. It told me vers. 4.2.
I googled Adobe Camera RAW 4.6 update and found the adobe link for the download. Make you Save the file and don't select Run.
Once it's downloaded and saved, you need to remove your exhisting plug in.
My Computer >> C:\ >> Program Files >> Adobe >> Photoshop Elements 6.0 (again in my case) >> Plug Ins >> File Formats.
Create a temp folder some where and move Camera RAW from the path above to that new folder. You will most likely be deleting this when you are done so it doesn't matter where you put it.. It's only a temp. thing. I just made a new folder on my desktop.
Then go to the Camera RAW file that you just downloaded and place it where you removed to old one from.
Thats it. Canon RAW .CR2 Files on Elements 6.0