SDince Premiere Pro only uses DV-AVI capture, use a mini-DV camcorder and firewire card as your interface. The camcorder I use can be had now off the shelf for under $500 CDN, and firewire pkgs (with cable) start for about $60.
Premiere Pro does not like mpeg video for its source.
You can still save your footage as a DV file with a DV codec. You need an analog capture card (with S-video) and use something like VirtualVCR to capture to one of the DV codecs out there: