You are probably using a newer camera than the version of ACR in Elements 6 supports. Check this list to see what version of ACR you need. If you are lucky, you can update ACR, but if not you either need to upgrade Elements or get the free DNG converter from Adobe and convert your CR2 files to DNG before you open them in Elements.
Adobe Camera Raw. That's the module that Elements and Photoshop use to convert raw images. It is included in both programs, though many people are not aware that it's a separate module. Try using the update function on the Help menu to see whether there's something available for your version.
Well, then you're probably out of luck. Adobe doesn't update ACR for new cameras on older versions of its products. If your camera was released after Elements 7 came out, then you have to either upgrade to a current version or go the DNG route.
That list only includes the newly added cameras in that version. It is likely that your camera was added in a previous update. I think the quickest way for you to find out is to just download the current version of the DNG converter and try it.
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http://www.adobe.com/support/downloads/detail.jsp?ftpID=4803
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DPP processes Raw CR2 files. Open it up and select File>Open and select your raw files. Is that what you mean?