Can you give us the complete details of that offending MPEG and also the Sequence Preset that you are using for it? Got to be something in there somewhere, or at least I hope so.
The source file was created by playing a (VHS) tape player into a Hauppauger video interface and Beyond TV software. I simply recorded the tape (which I can do again if I have to), and Beyond TV was configured to create a MPEG2 files.
So, once created, I import the file into PP. The 'dimensions' of the MPEG file is 720x480 and 29 fps. Same as the sequence I loaded the clip into.
I can only assume there is something wrong with that one place in the clip. The actual clip is about an hour and a half long - I was only using the first 20+ minutes. I have rendered the rest of the clip (that AFTER the problem area) with no issue.
I can do back and re-record that part of the VHS tape where the problem is, and maybe that MPEG file will be OK. . .
It's taken all day, but what seemed to be a Premiere Pro issue (it just happen to be the FIRST project I created with the new CS5 version), now seems to be data.
Can you configure your hardware to produce DV-AVI 720 x 480 w/ 48KHz 16-bit PCM/WAV Audio? That would be the best source footage to use.