Photoshop elements 10 and raw

Yes - and considering its the latest elements it should support pretty much all modern cameras without problems (some very new releases might take a little time before software updates for the RAW are on the market).

Note that you will have to install the camera codec (normally on a CD with the camera or downloadable from the manufacturers website) but otherwise you shouldn't have any problems.
Raw is not a file type. Raw image format - Wikipedia, the free encyclopedia

Ps Elements 9 and 10, Ps Lightroom 3, and Ps CS5 all use ACR 6 (Adobe Camera Raw 6) though the ACR 6 suppied with Elements is a heavily de-featured version of ACR.

Raw is a family of file types (there are over 100 of them). Many of the Raw file types are proprietary, but even proprietary file types like Nikon's .NEF and Canon's .CR2 vary by camera model.

So when Nikon's D400 or Canon's 8D or some other new camera model having a proprietary Raw file type start shipping, those that can will need to update their Adobe Camera Raw for those cameras once Adobe reverse engineers the new files types.

Camera Raw plug-in | Supported cameras

Can't open Camera Raw file | Photoshop, Photoshop Elements

Ps Lightroom 4 and Ps CS6 (both use ACR 7) will be released soon. Elements 9 & 10, Lightroom 3, and CS5 owners will not be able to update their ACR 6 to ACR 7. They will have to upgrade to the newest Ps release to use ACR 7.
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I have photoshop Elements 10 and it does support RAW files. I didn't have to download anything else.

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