It looks like Premiere is not reading the file correctly (the "slanted" lines are not interlacing artefacts, what you are seeing is just corrupt video).
Never having used Premiere before I can't offer a lot of advice; the only suggestion I can make is to open the AVS file in VirtualDub, and save out a lossless (huffyuv) AVI file (if you have the space). Then see if Premiere will read the AVI.