Thanks, I will give that a whirl. It's strange because I have edited vids on this machine using a fair number of vob files in one project and didn't have these problems. Then again, I think I was using Premiere 7. Too bad you can't save projects as previous versions of Premiere
Hrm, I wonder if it's hating the 23.976 frame rate? I don't know why that would affect memory though. I may try assuming 24fps if your suggestion doesn't work just to see what happens.