A firewire transfer of DV is the highest quality consumer file available. Once it's on your hard drive the codec you use to edit (MS AVI in Premiere 6) handles effects and transitions but doesn't touch anything you don't change. There is evidence that other codecs, like Main Concept,Vegas and Canopus for example, are superior to Microsoft, but it doesn't show up without repeated re-encoding. MPEG, either 1 or 2, are final formats, not editing formats, and both are much more highly compressed than DV. You want to work with AVI right up to the moment you select an export format, and that decision is dependant on your use for the export, be it DVD, CD, web, email.
David Hurdon
http://www.contentshop.tv