Premiere doesn't work with mpeg files, I don't know if that has changed in CS3 but in previous versions it didn't. It seems to be set up more for .avi and .mov files than any other format. Yes, it does use mpeg files but at the end of the process when it comes to burning a dvd. I downloaded a program recently called AVIDEMUX 2.4 and I copied a .vob file from a dvd onto my hard drive, I renamed it with a .mpg file extension (I kept the prefix) and then I imported the newly named mpg file into AVIDEMUX 2.4. Thankfully it opened it and using the settings on the left side of the main window I chose the following settings...

Video:- DV (lavc)

Audio:- Wav PCM

Shift:- 0 (Zero)

Format:- AVI

Also click YES when it asks you do you want to index the file.

It then rendered the file to .avi and I was able to open it in Adobe. This may or may not work with .mod files.

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