Unfortunately, version 8 will not edit Divx (which virtually no editor does edit) or MP4. So converting wasn't much help.
You don't say how you plan to share this finished video -- DVD or BluRay, online, YouTube, on an iPad or iPod, etc. -- but that would determine the best format to convert to.
The easiest solution is to convert your Divx file to a DV-AVI, per the FAQs to the right of this forum.
This will turn your hi-def video into standard definition video, but at least you'll be able to edit it in version 8. And, depending on how you plan to share your finished video and how powerful your computer hardware is, might be the best workflow anyway.
As Steve correctly points out, PrE can very seldom use either the DivX, or the Xvid CODEC's (the latter is the Open Source version of the Commercial DivX CODEC).
This article goes into more detail on producing and editing material from CamStudio, Camtasia or FRAPS, in Premiere, and might be helpful: http://forums.adobe.com/message/3601973#3601973
Good luck, and if CamStudio can output with other CODEC's, like the DV-AVI, that Steve mentions (for SD Video), then that would save having to convert. The use of DivX will result in very heavily-compressed, delivery-only files, so if you can output from CamStudio, with a CODEC, that PrE can use, then your quality will be much higher. I only use DivX/Xvid for delivery, as they are good for streaming Video, but not for editing.
Thank you Steve & Bill for your help. First of all I have to say that I can open and edit the Camstudio video in APE8 (I'm just doing trial so I add titles and some effects and when I save/share the file the modification are there) and then I share "Mobile phones & players" "Apple ipod & ipone" that produce and MP4 video with H264 codec. The original frame size is 1366x768 (AVI video) the final one is 1920x1080. So the problem is not that I cannot work with the file but the inferior quality of the MP4 compare to the AVI video. I think Bill answered this point.
Tried to convert the file into DV-AVI ended in a massive file of unacceptable quality. I used SUPER© for the conversion and the video bitrate is fixed at 29040 kbps (other codecs allowed me to set the bitrate). Camstudio has other codec available "Microsoft Video 1", "Intel IYUV codec" "Cinepack by Radius" & "Camstudio Lossless Codec V1.5" but all of them have other problems like excessive size (Intel..) or having flickering mouse after editing/sharing in APE8 into the MP4 video. Since I heard screen capture sw "Snagit" uses H264 compression I tried this solution as well but then APE8 doesn't upload the video and when I tried the trial version of APE11 I had the similar quality loss.
Is there any solution that is not too expensive that pair up screen capture and videoediting sw? What are people producing tutorial using?
Because the video capture is from a computer monitor, the Frame Size is going to be a limitation in PrE (even up through PrE 11), since it offers only standard video Frame Sizes. PrPro offers a Custom Project Preset, where the Frame Size, and non-standard Frame Rates can be chosen to match the Source Files (no Scaling, etc.).
Camtasia uses the TechSmith CODEC's, and when properly installed, can be used by PrPro (and I think PrE), but it is not freeware. Jeff Bellune, who provides a lot of info in that article on Camtasia/CamStudio, that I linked to, uses Camtasia and PrPro for all of his tutorials, seen on www.bellunevideo.com. That workflow is also used by Adobe in the Video2Brain training series, and for some AdobeTV tutorials, so you can judge the quality from those tutorials.
The limitations of PrE will mainly be the differences between the Frame Sizes, and possibly the Frame Rate, from a video capture program, and then possibly the CODEC's used. For some more reading on CODEC's, see this FAQ Entry: http://forums.adobe.com/thread/546811?tstart=0