Actually, Premiere Pro is the one with issues if you export in anything other than Uncompressed. Premiere 6.5 works fine when exporting with HuffYUV, at least. Too late to change that choice of editor now, though.
For the field options to set the editor to Progressive, it should be under the Keyframe and Rendering area on that screenshot. Set it to No Fields.
(Note: I don't use Premiere Pro, I use 6.5, so if I'm wrong on where that option is please correct me)
And a frameserver is something that acts like AviSynth (or rather, AviSynth acts as a frameserver, but you get the picture).

