For future reference: before you "Save as avi"

For saving clips out of Virtual Dub to use in Premiere, make sure to:

* Set Audio to "No Audio" (unless you want audio; but if you're going to be setting the clip to music, probably not)
* Set Video to "Full Compression" - under "Compression," use a nice compressy codec that Premiere can read, like Microsoft Video 9
* Make a filter changing the screen size, if necessary. Might I suggest 512x384?