I'd be looking at what else might be running in the background that might be taking up CPU or disk cycles.
I have nothing else running, I restarted my computer and turned on premiere pro. And even before when it didn't lag I would have anything running I want.
Windows 7 64bit
Duel core 2.8ghz
GeForce 8800 GT 512Ram
I have nothing else running
You ALWAYS have something else running. Open your Task Manager (or better yet, download Process Explorer) and you'll see.
Well yea, I have running what I need to have my computer be turned on, nothing extra. Can't close out those items.
Which I'm pretty sure has nothing to do with it due to the fact that I have been using Premiere Pro for years now and it has worked fine. Now all the sudden it lags? But if I rendered the footage it is perfectly fine.
I'm pretty sure it is a combination of the weak specs of your system and the very demanding source material. If you run the PPBM5 Benchmark you will probably find your system somewhere among the slowest 10% of all (nearly 1200) submissions, possibly around 40-75 times slower than a fast system.
How many processes are running, have you tuned your system, why are you using .MOV material and thus probably destroying the 64 bit nature of PR and reverting to 32 bit QuiRcktime server behavior? Which version of PR are you running?
That's often a matter of viewpoint. Post a screen shot of all running processes. Let's take a look, just to be sure.