Hi Mambusa
Format officially supported in Premiere..........NO !
However....try to match all the clip settings with your project settings.
1)Make sure,xvid is installed on your machine (device manager > sound and game controller > video codecs > right click properties > properties again > check the codec list
2)Premiere > new project > select "Pal Video for Windows"> click OK
3)File > get properties for > select your file > it tells you the A-Z of your file > keep it open as reference
4)Project > settings > video > adjust all the apprpriate settings , frame size (deselect 4:3) frame rate etc etc >
click next > adjust the audio as well
5)file > import file > select your xvid clip > et voila !
Works for me also with divx encoded footage
Good luck
FcotW