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actually, Adobe Premiere Pro can give you good quality with MPEG format if you install a plugin called MainConcept MPEG Pro. It is a full- featured MPEG editing solution for Adobe Premiere Pro. Although Adobe Premiere Pro will import MPEG format, it does not offer native MPEG editing and smart MPEG rendering.
To cut film into clips and remove non needed part, use razor tool. Say, if the clips starts at 1:00:00 and ends at 2:00:00, you might want to remove a segment between 1:30:00 and 1:45:00. Using the Razor tool, click on those two points to cut the clip at 1:30 and 1:45. Go back to the Selection tool, click on the part of the clip you want to remove, then right click, and choose Ripple Delete. All clips after that point move to the left and the gap is closed.