Ranting is fine... ranting with very little information for anyone to help is a waste of time
Read Bill Hunt on a file type as WRAPPER http://forums.adobe.com/thread/440037
What is a CODEC... a Primer http://forums.adobe.com/thread/546811
What CODEC is INSIDE that file? http://forums.adobe.com/thread/440037
Report back with the codec details of your file, use the programs below
For Mac http://mediainfo.massanti.com/
Once you know exactly what it is you are editing, report back with that information... and your project setting, and if there is a red line above the video in the timeline, which indicates a mismatch between video and project
More information needed for someone to help http://forums.adobe.com/thread/416679
Some is general about your computer and OS, some is specific to video editing
Build a Configuration file http://www.piriform.com/speccy
Brand/Model Computer (or Brand/Model Motherboard if self-built)
How much system memory you have installed, such as 2Gig or ???
Operating System version, such as Win7 64bit Pro... or whatevevr
-including your security settings, such as are YOU the Administrator
-and have you tried to RIGHT click the program Icon and then select
-the Run as Administrator option (for Windows, not sure about Mac)
Your Firewall settings and brand of anti-virus are you running
Brand/Model graphics card, sush as ATI "xxxx" or nVidia "xxxx"
-or the brand/model graphics chip if on the motherboard
-and the exact driver version for the above graphics card/chip
-and how much video memory you have on your graphics card
Brand/Model sound card, or sound "chip" name on Motherboard
-and the exact driver version for the above sound card/chip
Size(s) and configuration of your hard drive(s)... example below
-and how much FREE space is available on each drive (in Windows
-you RIGHT click the drive letter while using Windows Explorer
-and then select the Properties option to see used/free space)
Windows Indexing is BAD http://forums.adobe.com/thread/676303
While in Properties, be sure you have drive indexing set OFF
-for the drive, and for all directories, to improve performance
Some/Much of the above are available by going to the Windows
Control Panel and then the Hardware option (Win7 option name)
OR Control Panel--System--Hardware Tab--Device Manager for WinXP
And the EXACT type and size of file that is causing you problems
-for pictures, that includes the camera used and the pixel dimensions
Plus Video-Specific Information http://forums.adobe.com/thread/459220
Read Bill Hunt on editing a VOB/MPG file http://forums.adobe.com/thread/464549
Read Hunt on Using MOD/TOD files http://forums.adobe.com/thread/699990
Work through all of the steps (ideas) listed at http://forums.adobe.com/thread/459220
If your problem isn't fixed after you follow all of the steps, report back with ALL OF THE DETAILS asked for in the FINALLY section at the troubleshooting link
Also read file troubleshooting http://kb2.adobe.com/cps/407/kb407928.html
CS5 User Guides - online and PDF (right click PDF link to save PDF to your hard drive)
A "crash course" http://forums.adobe.com/thread/761834
A Video Primer for Premiere http://forums.adobe.com/thread/498251
Premiere Tutorials http://forums.adobe.com/thread/424009
CS5 Premiere Pro Tutorials http://forums.adobe.com/message/2738611
CS5 Tutorials http://bellunevideo.com/tutlist.php
Tutorial HD to SD w/CS4 http://bellunevideo.com/tutorials/CS4_HD2SD/CS4_HD2SD.html
Premiere Pro Wiki http://premierepro.wikia.com/wiki/Main_Page
Color correction http://forums.adobe.com/thread/892861
Photo Scaling for Video http://forums.adobe.com/thread/450798
-Too Large = Crash http://forums.adobe.com/thread/879967
After Effects Tutorials http://www.videocopilot.net/
Encore Tutorial http://www.precomposed.com/blog/2009/05/encore-tutorial/
And more Encore http://library.creativecow.net/articles/devis_andrew/
Surround Sound http://forums.adobe.com/thread/517372
And how the hell is there not a "move scrubber to next keyframe" hotkey in this program???
You can set up a shortcut to go to next Key Frame in FX Panel if thats what you want
Now - whats the "bug" you refer to?
Tell us about your Project , system, platform hardware etc...
Cross Fades work for me.
No idea why you get pixelation.
Honestly, my feeling here is that you're used to a certain way of working in FCP, and you may have to get used to a different method when using PP. It'll take time, and education. A good place to start is with the PP Help file.