A live video feed was loaded onto my hard drive in a V.O.B. format. This was done through a "dazzle" device. I want to upload this video onto YouTube.

I have never uploaded any video to YouTube.

Can video in that format be uploaded? If so, please provide step-by-step instuctions.

If I edit that V.O.B. video in Adobe Premiere, can the resulting .prel file be uploaded to YouTube? If so, Please provide step-by-step instructions.

As far as I'm aware YouTube is set up in such away that ANY video file that is upped can be handled by the site.
YouTube Help (http://www.youtube.com/t/help_center) section covers everything you need.

Your VOB file would best be converted to avi for ease of upload as VOB's are very large.

I doubt the VOB file would be accepted as it is a native uncompressed DVD format and most PC media players would not know what to do with it. Most people use DVDShrink or other such programs to rip DVDs to AVI.