Premiere really doesn't edit Mpeg very well. You'd be better off converting it to a format that Premiere does accept. Most of the video forums recommend avi using the huffYUV lossless codec. Check out the forums on videohelp.com, www.doom9.org, creativecow.net, wrigleyvideo.com, afterdawn.com. This is a pretty tech-savvy forum, but those forums are dedicated to video issues.