OK, day three of trying dozens of ways around this issue. I've scanned most of the thread above (and many subsequent threads mentioned within it) and still I am no closer to a solution.

Renaming the files is a failure in CS5.5 on the mac. I decided to try to use the Media Encoder to export different file types. Each time the files squash and there is quality lost in each of the compression methods. I even check that they files are still 720x480 with the Media Inspector you recommended. They say they are still 720x480, yet in Premiere they do not appear to be (Premiere inspector shows them also as 720x480). I'm at a loss. It actually blows my mind that there is not a better built-in solution from Adobe with this seemingly common file type.

Not sure how many hours I am willing to suffer with this footage, which is quite sad. One of a kind storm footage from here in Malta.

Unfortunately the mcac3dec.framework framework mentioned doesn't seem to exist in PrPro 5.5 - perhaps it does, just named differently?

Here is the actual set up suggestion taken from the wiki written by Vidioterie. Mind you this was for CS3:

FINALLY I found the solution for Mac users, and it's just as easy as the Windows solution offered above, assuming you have Adobe Encore DVD installed as well. I worked with the CS3 version, but I think it'll work equally well with CS2 or CS4. Here it goes:

1. in Finder, navigate to Applications -> Adobe Encore (CS3)
2. ctrl-click on the Adobe Encore CS3 program file in this folder
3. click 'Show Package Contents'. a second Finder window opens.
4. navigate to Contents -> Frameworks
5. select and copy (cmd-C) the folder 'mcac3dec.framework'
6. close this Finder window
7. in the first FInder window, now navigate to Applications -> Adobe Premiere Pro (CS3)
8. ctrl-click on the Adobe Premiere Pro (CS3) program file in this folder
9. click 'Show Package Contents'. again a second Finder window opens
10. navigate to Contents -> Frameworks
11. paste (cmd-V) the copied folder into the Frameworks folder
12. check if it's there. it should be listed in between 'mcaacaenc.framework' and 'mcdvd_32.framework'
13. That's all! From now on, all you'll have to do is rename your .MOD files to .MPG and you'll be able to work with them directly in Premiere without ANY converting! Yay! :-D