Ok I googled around & found the path for PSE 5 w/XP:
"Installing Grant's Tool in PSE5. First make sure that the "Show hidden folders and files" option is turned on in Windows. Then create a Shortcut on the desk top to:
C: Documents and Settings>All Users>Application Data>Adobe>Photoshop Elements>5.0>Photo Creations>Special Effects>Photo Effects
To install an action just unzip the file and then drop the folder on the shortcut ... restart Elements and the action then shows up in Special Effects>Photo Effects."
I believe when I used PSE 5, I skipped making the shortcut and put the folder directly into the "Photo Effects" folder. HTH -c-