Cheapest camcorder with pass thru is Canon MV960 (£235 online).
Canopus make good converter boxes, like this
http://www.dv247.com/invt/23453 are dvd avi's as easy to edit in premiere as normal avi's
It is DV avi (not DVD). avi is just a wrapper, it can be all sorts of type, but DV avi is the "normal" filetype which Premiere and most editors was designed for. It is the same as you get when shooting with a DV camcorder.