Try this instead...
Download these:
MPEG 2 Version of VirtualDub Panasonic DV Codec
Install the codec
run virtualdub.exe
drag the VOB into vdub
click Video->Compression, select Panasonic DV Codec
Click Audio->Full Processing Mode, then Audio->Compression and choose MP3 or whatever you want
Hit F7 and choose an output path and filename. Once done you should have a DV AVI which you can import into Premiere. You will need a lot of disk space probs!