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 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.