Looks pretty simple: Your computer lacks the muscle. What are your specs?
Intel Xeon CPU 3.20 Ghz (2 processors)
4.00 GB of RAM
Windows Vista Business - Service Pack 2 - 64-bit
2 60GB Hard Drives (use only for program files)
2 TB network drives for all information (videos, audio, titles, etc)
ATI Raden 4650 Video Card
My first thought is the same as Harm's, that your computer just can't handle the load.
Having said that, I recommend switching back to the proper preset. Use the Interpret Footage command to make sure Premiere properly recognizes the media for what it is, changing those specs it gets wrong.
yea, I made sure that I had it conformed to progressive which i did, but still nothing.
Is that a 603 socket Xeon? If so, you are way underpowered, even with dual sockets and your disk setup is severly lacking too. Network drives are way too slow.
Even with my files on the main drive, it still studders. I'm not sure if its a 603 socket. The computer was built by 1 Beyond Inc. a HD video systems company.
You ought to be able to find the specs. If you can't, we have to continue a guessing game and my bet is in: not enough muscle.