I created an action (.atn file) to transform an image into a color sketch. Feel free to download it and give it a try. I tested this action in PSE 7, 10, and 11 through 2020. It worked just fine. I believe the same will hold true for PSE 8 and 9.
If you have PSE 11 and above, load the .atn file via either the Actions panel or the Effects panel.
If you have PSE 7 through 10, you need to install this action so that it can be accessed via the Action Player (Guided Edit>Automated Actions>Action Player).
Windows: C:\ProgramData\Adobe\Photoshop Elements\x.x\Locale\en_us (or your locale)\Workflow Panels\actions
Mac: Hard Drive>Library>Application Support>Adobe>Photoshop Elements>x.x>Locale>en_us (or your locale)>Workflow Panels>actions
The results will vary depending on the nature and size of your image. I tested different sizes (in pixel dimensions). The best results were obtained when using images of about 2000 px and above on the shortest side.
I replaced the original Color Sketch action with an updated one. In this new version the file is not flattened at the end. The original color layer is kept at the top of the stack. You will be able to reduce the opacity of this layer if you wish to do so. Also, a layer mask was added to enable you to do selective colorization.