Premature Burial was banned due to an infinite loop combo with Trishula, Dragon of the Ice Barrier.
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Monster Reborn is a "broken" card in Yu-Gi-Oh! because of its ability to Special Summon any monster card in either player's Graveyard at virtually no cost.Before current Forbbiden/Limited card lists, Monster Reborn was considered better than Call of the Haunted or Premature Burial because it was an unfair balance of give and take, while Call of the Haunted, and Premature Burial came with a cost (Call of the Haunted had to be Set and then activated the next turn and was vunerable to Spell/Trap destruction cards and cards such as Jinzo and Royal Decree; Premature Burial, although could be activated immediately, still required a cost of 800 Life Points, and was also vunerable to Spell/Trap destruction cards).However, players started to abuse the return effect of Giant Trunade and were able to reuse the effect of cards such as Call of the Haunted, Premature Burial, and Swords of Revealing Light over and over again (which resulted in the Limiting of Giant Trunade). Another advantage that influenced the banning of Call of the Haunted was its ability to activate even on the opponent's turn. Monster Reborn could not do that. Later, when the new Forbbiden/Limited card list came out, Monster Reborn was switched with Call of the Haunted on the Forbidden section. And the list after that placed Premature Burial right next to Call of the Haunted in the Forbidden list, and Magician of Faith was put there as well to avoid abuse of the newly released Monster Reborn.Premature Burial was deemed even more abused than Call of the Haunted. Along with Giant Trunade, the newly released Hidden Armory, foreshadowed continued abusive play with Premature Burial which earned it a place on the Forbidden list.As of the October 2010 Forbidden/Limited Card List, both Monster Reborn and Call of the Haunted are now Limited, with Premature Burial still Forbidden.
When Stardust Dragon uses its effect, it is 'tributed', which is not a destruction effect. Because it leaves the field, it means Premature Burial loses its target, so Premature Burial will go to the graveyard too. It will not inflict a destruction effect on Stardust Dragon.
Yes, you can use the effect of "Swarm of Scarabs" after reviving it with "Premature Burial" or "Call of the Haunted" ("CotH"). If "Premature Burial" was used on "Swarm of Scarabs", then "Premature Burial" will be destroyed and sent to the Graveyard since Spells cannot be equipped to a face-down monster. If "CotH" was used instead, "CotH" will simply stay on the field. It is no longer "connected" to "Swarm of Scarabs". And essentially serves no function. In both cases, "Swarm of Scarabs" is independent of the card used to revive them. It will not be destroyed in the card used to revive them is destroyed.
Premature Burial Can be used on Horus the Black Flame Dragon LV4 and LV6. Horus the Black Flame Dragon LV8 can only by summoned by the effect of Horus LV6 or the spell card Level Up or Level Modulation
If you use Stardust's effect, then it is tributed but not destroyed. That means a Call of the Haunted that summoned it, will remain on the field. However since Equip Spell cards can't remain on the field without a target, Premature Burial will be destroyed.