I use ATI tv wonder card (and ATI multimedia center 7.5) for captures from my HI8, which u can use to capture in many different formats (mpeg,avi,divx,wmv...) from there you can edit the movie using any number of programs (ulead video editor, adobe premier and many simpler ones as well) and then to burn I use ulead's dvd factory and make vcd's which can be played back on normal dvd players. Here you will find many links that will help you out-http://www.rage3d.com/board/showthread.php?threadid=33588723
Have fun, can be lots of work though
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