I see said the blind man…the codec is XVID and wont work in Premiere, along with DIVX. You will need to try a converter to convert it to H264, but before you buy anything make sure Premiere will play nicely with that.
At this point the Export Settings window should open, not the Media Encoder. I suspect by the beep noise the Export Settings window is open, but hidden…maybe minimized to a task bar or shoved off the edge of a screen.
Some H264 video is problematic with CS4 as well, not quite as bad with Premiere Elements 8, although I have had audio problems. I have used QT Pro to export good audio files and on occasion video (uncompressed) for editing in CS4.
I am glad you succeeded and are willing to share that success, but the file downloads as a .htm file and wont open. Changing the file extension to .zip or .pdf does not help.
My CS4 on a PC does not like some variants of H264 as source files. I have not got to the point of export because Premiere is way too sluggish to even edit. Premiere Elements slices thru the stuff and exports at a blistering pace.