I used Hauppauge HVR-1950 External capture device and converted my Hi-8 tapes to MPEG files and burned them on CD/DVD. Windows Movie Maker or ULead DVD Movie Factory, came in handy for editing. Its a slow process.
Hi-8 (or VCR) ---> HVR 1950 ---> Computer Hard Disk ---> Edit ---> DVD/VCD
Hope this helps.