Choppy footage from AE

Warp stabilization is very process intensive, and you should not

expect to get real-time playback of the linked comp in Premiere.

You should render the effect (or the entire timeline) for smooth playback.

Render a preview file for a section of a sequence

Red, yellow, and green render bars and what they mean

edit:

added render bars link per fuzz's suggestion.

A couple of words to what Joe says.

Irrespective of the dynamically linked AE comps complexity PrPro CS5.5 displays them yellow in the timeline, which might be misleading.

So as to get smooth preview playback you need to 'Render Entire Work Area' (not just 'Render Effects in Work Area'!).

If this option is grayed out, you may e.g. select any clip on the timeline and copy it into clipboard (Ctrl/Cmd+C) - Voilà! Access granted.