Well there aren't any problem clips. I can export without a problem and the export file plays back like it should. It's just that the preview option WITHIN Premiere has some sort of glitch. I didn't have this problem before when I worked on this project. The files are consisted of .mov and avi files.
From the above link: <br /><br /><i>Sometimes only displays green crap if the window's been backdropped in some apps (for example Premiere).</i> <br /><br />You could try to convert (e.g. with <a href="http://www.virtualdub.org/" target="blank"><b>VirtualDub</b></a>) the YUY2 video using the <a href="http://neuron2.net/www.math.berkeley.edu/benrg/huffyuv.html" target="blank"><b>Huffyuv</b></a> or <a href="http://lags.leetcode.net/codec.html" target="blank"<b>Lagarith</b></a> codec. Both use <i>lossless</i> compression.
The client had sent me a promo dvd that he wants me to use so I had to convert it into an editable format. I used a program called dvd2avi and I don't use any third-party plug-ins. I really don't know where the glitch is coming from. Could it have something to do with RAM (I have more then enough) or any kind of settings?