Grainy/Distorted Effect

[KholdStare88]

Hey guys, I was wondering how I could make this transition effect:









Animated:

http://www.youtube.com/watch?v=Ogp5U23kgn0#t=0m36s

I'm not sure how to get the middle portion, where everything is distorted and such. I don't need exactly this transition, so if there's another transition that I can use, please let me know! Thanks in advance~

I'm using Adobe Premiere CS3.