I may have accidentally set Premiere Pro so that every out point I set, it advances 5 frames ahead, making it very frustrating to make cuts at precise points. There is now a dashed orange line next to the cursor.

I can't find the setting to disable this. Any ideas?

It sounds like you are invoking the Large Trim Offset function (set in preferences>trim) somehow. It typically defaults to 5 frames.

Might look at the info on trim function here: Kevin Monahan | Support for Adobe digital video products | Page 3 (http://blogs.adobe.com/kevinmonahan/page/3/)

and here:Adobe Premiere Pro Help | Trimming clips (http://helpx.adobe.com/premiere-pro/using/trimming-clips1.html)