Import the file as a clip, then drag it down onto the timeline. Right-click and change "Speed". You can set the new speed as a percentage of the original or as a new duration. This will change the duration of both the audio and video.
To just change the video duration (if the audio is off from the video) you can preload some audio before the video (or negative preload, which lets video play before the audio starts). Use this if the audio is constantly off a particular rate. If it's close at the start of the video and gets progressively worse, then you can change the frame rate of the video by small amounts to adjust. I know how to do all these things in VirtualDub and have never had a reason to learn them in Premiere, but vdub pretty much only supports the .avi format.
From reading your post again, it sounds like you might want to just slow down (or speed up) one short portion of a longer video. That can be done, too, but I won't get into it unless you need/want the info.
I downloaded the clip, but don't have an appropriate decompressor, so I couldn't really see what you were going after. What was it encoded in, a very new version of Windows Media or maybe ASF (might be one in the same, am unsure). I just made a couple guesses here at what might be the problem. ----------------------------------------------------------------------------------
...but I'm just a C man trying to see the light