I would just razor the clip at the photo moment, export the frame at that moment, import it into photoshop or whatever image app' you use and de-interlace, add a white border maybe and a tint or something (sepia if your feeling especially corny), then import that into premiere, do a white flash style transition from the footage to the photo then a quick cross-fade or just a straight cut back to the original footage afterwards.

I'll see if I can do a quick example.

EDIT: I made a quick example from some footage I shot today, edited in Premiere 6.0 using the technique above:

http://www.youtube.com/watch?v=EvdYQjfj9nE

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