This just made it worse. Here is what someone on the Adobe Premiere forums said:
Nathan, obviously it's your set-up, not the hardware.
Are you capturing through firewire? Are you capturing onto a separate blank or fast hard drive?
First make sure if you boot on C: to capture onto D: If possible use a blank hard drive on D. Try again.
If this does not work, I recommend, you uninstall and re-install everything editing related. Try again.
If this does not work, you get a clean hard drive (use a rack) and you re-install Windows XP and Premiere PRO. Make sure you have all the latest versions.
Try it again. If it works, go on to install all the other editing programs and plug ins.
Finally, if this still does not work, check you firewire acquisition card or motherboard for compatibility. I usually stick with major brand names to avoid surprises.
If none of the above work... which is unlikely... check the camera for malfunction.
May the force be with you.
I don't understand how this could be the problem with the DVD playback and other videos.
If you have any advice, it would be greatly appreciated!