Guess what , I got it to work finally with version 3.0.12 !! & PSE7
I brought a license for Elements only , hence tried the Elements only download files.
For elements only 3.2.0 , CM Installs and open , but found 2 problems , no Pin Palette and in Lab mode , for the Colour and Brightness sliders , the colour works fine , but when brightness slider is moved , the image goes completely haywire in brightness.
For elements only 3.0.19 , 3.0.18 and 3.0.15 , post installation , when I clicked on CM under PSE7 filters, PSE7 packed up and threw an error and shut down.(Checked all 3 , before installing ,first uninstalled previous version and then manually deleted CM folder + also deleted the CM entries from Registry .)
Finally 3.0.12 works beautifully.
Tried this set of actions on 2 Laptops (One Lenovo and One Dell) , one with Win XP SP3 Premium and one with Win XP SP 3 Home edition as the OS , both with PSE 7 , identical results.
It seems that releases 3.0.15 upwards have problems with lower spec systems (less than 64 bit maybe !!).
3.0.12 seems to work great.
Hope that this helps others as well as the CM development team