A gradual slowmotion setting?
 

I am currently using Premiere Pro 2.0 and I was wondering if there is a setting to gradually slow down a clip and/or gradually increase it. Instead of just applying 1 speed to it and that's it.

nope. that's an after effects pony. called Time Remapping there.

Oh ok, thank you.

if you don't have access to other software, you can trim the clip you want to remap into small slices and set different speeds on each slice in increments based on your desired effect.

10 second clip shot in 50% slowmo, 5 slices:
5 sec 200% = 2.5 sec runtime
1 sec 175% = .65ish sec
1 sec 150% = .75 sec
1 sec 125% = .85ish sec
2 sec 100% = 2 sec

Should look like time ramps down to slowmo.

The standard solution in Premiere is to chop up the clip, just as Cole suggests.

However, my recommendation is not to use Premiere. Premiere uses frameblending which can produce strange and blurry slow-mo that is easy to see when slowing down clips with a lot of motion in. "Frame blend speed changes" can be turned of on clip basis. If this is turned of Premiere simply duplicates the frames. A clip speeded down to 50% (1/2) shows the same frame 2 times, a clip speeded down to 33% (1/3) shows the same fram 3 times etc. A clip speeded down to 40% (2/5) will probably have jerky motion.

The best solution is to use After Effects with some plugin like The Foundry Furnace (I think it's integrated or licensed in AE7). Furnace is smarter and calculates what the missing frames would be like. I've tried the demo and managed to speed down a clip to 10% and still get smooth motion. The clip was originally around 1 s (25 frames) and slowed down it became 10 s. This means that Furnace generated 250 frames from 25 frames!

if working with interlaced sources however, be careful of exposure, as your exposure level wll affect the flicker/strobing