I'm using PAL footage and windows XP, I do this:
Composition>Composition settings>make sure duration is correct, so 18 seconds or whatever.
File>Export>AVI> (video for windows selected) Save >
then click settings for the video and change it to DV/DVCPRO NTSC (I use DV PAL)
slide quality to Best, set frame rate to 29.97 (I use 25 for PAL).
I leave the sound as uncompressed, or uncheck the box if It's not important.
That seems to work for me, I get choppy playback in WMP I think (but that might have been when I used a different codec ) but the footage works perfectly in Premiere.
Panasonic SD9, Panasonic NVGS-75, Canon MV600i