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Nor especially. Tape based MiniDV is the preferred choice.
Based on reading a LOT of problem reports, importing files from a DVD or hard drive camcorder or other MPEG device (including digital STILL cameras that create MJPEG files) or trying to edit divx, or Ripping DVD files rarely results in success in Premiere... do not be fooled by movie industry advertising into thinking that "DVD Quality Video" is suitable for EDITING... it is not... a DVD is designed to be for PLAYBACK only... and that includes trying to edit a Standard Def MPEG or VOB file!
You should also use WAV sound files, not the compressed MP3 format
The only SD (Standard Def) files that Premiere really likes are DV AVI type 2 (be sure you have type 2 and not DV AVI type 1 files)
HD (High Definition) files are a completely different issue... I don't use HD, so can't say anything about editing those files
Go to my notes page http://www.pacifier.com/~jtsmith/ADOBE.HTM
Click the internal link for editing compressed files... read, there are some ideas & links there, including some links to other programs that have been mentioned in the Premiere forum as being better suited to editing MPG files... if you want to edit a divx file, start at http://www.divx.com/
If you only have DVD type files, you should convert to DV AVI type 2 or use different software... go to the VideoHelp link in my notes and look for a program to convert... but do be aware that converting from a HIGHLY compressed viewing format back to an editing format is going to cause a drop in quality
PS - To work with AC3 sound files in Premiere CS3, copy the ad2ac3dec.dll file from the Encore CS3 directory into the Premiere directory
For a Firewire DV Camera - look at Panasonic PV-GS320 or GS500 (Note that I have not used either, but they have good reviews)