I am assuming that u are using the ALL-IN-WONDER® RADEON™ 8500DV. I dont think the other 8500 model has dv capture.(posted 8208 days ago)The ALL-IN-WONDER® RADEON™ 8500DV would come with its own driver for firewire (IEEE1394). What u got to do is install the Microsoft DV driver. (Install Directx 8 and DirectX DV). You would also find more info on www.adobe.com (www.microsoft.com/directx)
If u are not using the ALL-IN-WONDER® RADEON™ 8500DV, and if it has a composite video in (anolog), then use the app along with the ATI software to capture video and save it to a file and import the file into Premier.
Your problem may lie in the fact that u might not have istalled the drivers of your card properly.
Hope this helps.
-Nachi