Unless Premier has changed, it would take your DV video with 48k audio and resample it down to 32k audio, which is non-standard. It teaches other bad habits that if you move up into a more professional application you will need to unlearn before you can procede. It's been a coouple of years since I even looked at it, so things may have changed, but knowing Adobe I don't think so. Encore does a bunch of non-standard stuff too, which lets you do incredibly complex things, but not do them the right way, so they may not work on all players. After Effects still does some pretty amazing things if you take the time to learn how to use it.
I checked the Puremotion site (edit studio) and it seemed to be down. I owned this back with version 3 and it was a good solid editing application with features being added with each revision. If they are still around I highly recommend it. If it comes back:
http://www.puremotion.com/
If you want to shoot straight to the top, buy a Mac and use FinalCut Studio, or Avid Media Composer software version (on windows or mac). We just upgraded our video editing lab to Media Composer this past August, and it is much more flexible than Xpress Pro. That said Xpress Pro would probably do what you needed. Down side is that Mediacomposer is a $5000.00+ application and Xpress Pro is $2000.00+. To get FCP Studio and a new Mac would run you about $3500.00 total.
Vegas is a really solid application (the last time I looked at it) and it will use any installed codec that allows editing (some DIVX codecs are not the best for editing). Same goes for the high end Ulead application.
I wish I could go into more detail, but I haven't been doing much with video except what we need at work, and that is either Avid or FCP running on Mac G4 (now nice new intel MacPro hardware).
And when I was doing a lot more video work for myself, I used to hang out at
http://www.videohelp.com/ where you can find a list of different tools, especially the freeware tools (
http://www.videohelp.com/tools ). VirtualDub is one of the swiss army knives of video work, and it is FREE!
http://www.virtualdub.org/ With it you can do a lot of still to video work, some have even used it to pull stills for each frame of video, then run some batches in Photoshop to make corrections, and then reassemble those stills back into video. Should be in every Windows video editor's toolbox!
Look into WAX for some compositing work, last time I checked it was still free for supported editing applications.