This is a duplicate of my famous post on Wrigleys Video Productions forum. Majority of my sites traffic is from people downloading this video.

Once setup, this is an easy and efficient way of importing VOB (DVD) files into early versions of Adobe Premiere without the need for re-encoding video.

First you will need:

Adobe Premiere AviSynth Import Filter Plugin – http://urchin.earth.li/~tomford/avisynth/index.html
AviSynth – http://www.videohelp.com/tools?tool=Avisynth
Microsoft .NET Framework – http://msdn2.microsoft.com/en-us/netframework/default.aspx
MeGui – http://www.videohelp.com/tools?tool=MeGUI

Once you’ve got these installed, ensure you update MeGui so that it downloads the latest version of DGIndex then watch the tutorial video on how to use them.

Tutorial Video – Importing VOB files into Premiere – 3.70MB WMV9 3:28

This also works for MPG/MPEG videos.

Although MeGui features a “D2V creator” I had problems using this, hence I load DGIndex separately.
People have mentioned renaming the “.vob” extension to something else such as “.mpg” or “.avi” I’ve tried this method and found that any edits aren’t as precise once rendered and sometimes premiere will give an error about being an usupported or a damaged file.

For further assistance, I’d recommend reading through the post on Wrigleys Video Productions forum.