thanks Mills
answering your questions: unhappily, i cant go back to the original source footage and Premiere does not create this mpeg2 file.
i have tried to convert this file to avi. but this file has 2 hours long, so when i tried to convert it. i discovered that the final file would be larger than my harddisk(80gb).
i already have my logo and it is not complicated.
i would like to know what would be considered a better file type(as you said) to reencode.
after Importing the logo into Premiere and place the graphic on a layer above the footage, what should i do? save?

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: i dont know much about adobe premiere.