Chas it really is a simple matter of correcting your white balance to get rid of a blue hue, the way you are doing it is kind of getting rid of the problem blue background, but that blue is also in your pen, if you get a neutral white balance it will help with everything else, you won't have to use the magic wand tool and clip the pen's components.
I wonder if Terry could say how he get's the white balance right with Elements I don't use it and I can't help with that part, but if you want help with it PM me. Look at Vic's Pics he has made a leap and you already have the camera. If noone can help you with Elements I can try and talk you through what you should be looking for, but will do it by PM if you want to, Lets see if someone will come forward to help.
Peter