Err.. You said that you're playing the FMVs directly from the CDs. Didn't you convert them (in other words: rip them) to your HD using a compressor, such as DivX?

Only PSOne movie players can view FMVs directly from PSOne CDs. Premiere can't do that, which is why you need to rip them.

I guess that's it, unless I misunderstood you.