Have something new to add. This may not be directly a problem with Premiere. I tried creating a DVD through MY DVD 9 (Roxio) and noticed when trying to add the video, most files were X-ed out and non-selectable. The few videos that I WAS able to select, I tried to open in Premiere and drag into the timeline and THEY worked fine.
This is only like 2% of my videos though. I can't figure out which format or why only those few will work. All the videos play just fine on my computer when viewing them. =/ Doe this have anything to do with the codec or what? Has anyone else had this program?

Any help or ideas appreciated.