Recently I watched Schindler's List and it got me curious as to how they made one color appear in a black and white frame (like the little girl in the red dress when the rest of the film is in B&W).
Does anyone know how I would go about doing that (preferably with Premiere)?

It's called "colour (or color) Pass". This has been covered many times on the forums and i would suggest you do a search for colour pass or color pass.

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I have also heard it done with a matte created in photoshop, but i think that's retarded and it's a lot easier to use color pass...

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