Gee whiz, Earl, I'm really sorry about the loss of those folders. Unfortunately, it isn't directly related to either program - Elements or Album. Elements doesn't store any images. Those are all stored in folders on the hard drive of your computer and become accessible through either the File>Open feature of Elements or the Browser feature. You could completely delete Elements and the images would all stay on your hard drive.
I've never used Album but, from your description, it sounds like it handles photos in much the same way as a piece of software I use on my Mac. It doesn't store them, either, but simply provides a convenient way to organize them so I can quickly find the ones I'm looking for. What really happened is that you deleted the folder of pictures off of your hard drive, and that's why Album is now saying the source file is missing.
Have you emptied the Recycle Bin yet?! If not, open it up and move them back onto the desktop of your computer.
If you have emptied the Trash Bin, there may be hope, depending on how important it is that you recover those specific folders. Many of us copy our image files/folders to CD or some other kind of external media. Did you?
If you don't have back up copies, stay away from your computer for a while, except for internet stuff. I don't use a Win machine, but there is software available for Macs that can occasionally recover items that have been deleted. The trick is to get to them quickly before other information has been saved on top. I'm pretty sure there's something similar for Win machines. It might not work, but it's definitely worth trying. I can't tell you what you'd need, but someone else will undoubtedly see your post and be able to address that.