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The SR10 is not a HDV camcorder it is AVCHD. Therefore you need to use the "AVCHD or other hard disk/memory camcorder" capture option.
Also note if your audio is 5.1 surround sound you need to select the appropriate 5.1 audio AVCHD project preset before you start your project. This will sort out your track issues.
As far as I know, NO version of Premiere works with USB... only Firewire
That is true. For AVCHD over USB, you'll need to use the Get Media/AVCHD media downloader.
And it will then capture over USB.
"NO version of Premiere works with USB... only Firewire "
This is correct only for tape based camcoders. (with the exception of those having USB Streaming capabilities)
But for the Other Hard disk based camcorders, it works with USB.
Well, I guess it depends on how you define capture, editmachine.
You can DOWNLOAD from hard drive camcorders over USB. Your files come in as large chunks.
But, over FireWire, from a tape-based camcorder, you can stream the video in and select which short segments you want to capture.