Editing video with Adobe Premiere Elements

Through this message board I found out how to transfer a VOB file into an AVI file using GordianKnot.

Now that I have done that, I can load the file into the media screen in Adobe Premiere. It plays the clip on the monitor, but when I pull it down to the timeline, it shows nothing. Does anyone know what is wrong or have any suggestions.
The file is 349 MB, could that be the problem?

Any help would be greatly appreciated

thanks

I have the excate same problem. I am preaty sure that it is because it is to big of file size. But i dont know. I have worked on it all day and got no where with it. I am going crazy. When I put it in the timeline it goes all jumpy and distorted with no sound. I am going to try to condence the file size and see what happens, I guess I have to figure out how to do that too.