Well, good luck in either finding a fix or, if needed, doing the upgrade. Sorry about the problem!
I made the move from Elements to CS2 a few years ago, although I did still have images in the Organizer if I recall correctly.
But, Lightroom was in the works, it sounded like a good concept, so when they released the Beta I jumped on it. Bear in mind that I was shooting all Raw and so Lightroom was a "fit" (the early releases only supported Raw files). But, as is common, the earliest versions of LR had issues. I had upgraded to CS3 and so kept that as the center of my workflow until LR had gotten a couple upgrades (to ver. 1.2) and had good reports so I installed that and LR quickly became the "center" of my workflow. Since then of course LR has had very significant upgrades, and I can definitely recommend LR3 if your budget permits. And, if you or a member of your family/household is either a student or an educator you can get LR at a significant discount ($100 USD rather than $300).
But, even then it is useful and sometimes needed to resort to a pixel editor such as Elements. Lightroom doesn't have the tools such as layers and its cloning capabilities are limited so that if you move to LR it would still be wise to have at least the Elements Editor functional. But Lightroom has a very advanced set of organizational tools so if your issue is only with the Elements Organizer you could make the LR move and be happy only needed occasional use of the Editor.
Well, hope this helps a bit!