>>you’re right, lossless or uncompressed AVI files are huge. If you are starting with xvidcompressed files, I’d recommend going to MPG2 as your source for editing.<<
But not if you are going to stay in Premiere Pro. The preferred format for working in Premiere Pro is either AVI or MOV files using NTSC DV compression.
>>And MPG2 is becoming the defacto standard of video compression so it is generally easier to find programs to convert other video formats into it.<<
Can you elaborate on that a bit. I was under the impression that MPEG-2 was becoming less and less viable outside of DVDs.