When you say "system" you don't say whether this is a deck, or your PC. If it is a canopus drive-bay analogue->DV converter - then great - that would be about the same as the Pyro AV Link (props for the model 555).

The best way wasn't necessarily my way. ;)

I have used my Digital8 (DCR-TRV110E) camcorder for this task, until the firewire port went AWOL.

This wasn't worth repairing given the consumer end specs for DV/D8 camcorders these days. Also the second hand market for DV/D8 camcorders with analogue inputs and analogue-DV passthrough is too rich/risky for my blood, so:

Now I use an external USB2 - Creative Labs Audigy2 ZS Video Editor (UK £90). - These have proven to be less than popular for their multi-channel-audio-via-USB2 functions that have been blended with a plethora of video capabilities. So I am the beneficiary of this lack of sales as this is about half their list price.

The Audigy2 ZS Video Editor captures from svideo into DV (type2) AVI using the proprietary capture tool. You can capture directly to DVD profile MPEG-2 also (with an image processor in-line to handle VCR mechanical-timing and format issues) - Haven't dropped a single field having analyzed it's work quite carefully. OK, so Creative make kit we must avoid, but not necessarily in all areas.

It also does this:

4 port USB2 hub,
4 pin DV-only firewire I/O port
[4 port DV has added benefit to the saves needing a firewire equipped laptop]
analog A/V capture ports [same sort of capability as the Matrox RT2000 had]
analogue A/V send ports [DVD, DV, MPEG-2, MPEG-1]
VCR mode [unspecified-technique:TBC-lock mode (ideal for Hi8) - ie straight edges to DV.]
optical in / optical out audio
24/96 capture
DVD-Audio playback enabled software
DTS and DD decoder
headphones mic (master volume and mic-level potentiometers)
All external - so it can sit by your camcorder.
Also has an external remote control so you can more readily use your PC as a media center.

I've installed the drivers and the latest download vidcap and none of the Ulead or CreativeLabs stuff. The A/V Link would integrate with Vegas better - but I don't tend to use scene capture by timecode anyway - so this cheaper alternative was easier to justify than a unit that only came out when I needed to capture Hi8.

It may not be much and the stocks may dry up, but this was the cheapest DV-quality path I could muster. I'd also recommend it.

You really can't beat a Digital 8 deck or camcorder for this.
If you've only got a small number of tapes to transfer I'd suggest getting a dub house to do it, they can be remarkably cheap. Failing that rent a deck or D8 camcorder. OK, I work for a rental company (end of product disclosure statement) but realistically oftenly renting kit just saves so much money if you only need it briefly.
I don't know where you are so I can only speak about local rental companies but they're pretty much the same world wide. Most will do discount rates over the weekends, typically only charge you for one day and over a weekend you can transfer a LOT of tapes.
The other unusual place to try for a D8 deck like the GD-V800 is a 35mm rental company. They use them for capturing from the video taps on film cameras. They might have one not in use over a weekend and only too glad for it to earn some income.
If all else fails you can buy this kind of gear off eBay. Don't freak at what you pay for it becuase the idea is to resell it when you're done with it.

Bob.

Bob ... some Cameras have a pass threw ferature, i know my GS400 does, you could use it to feed the camera Analog and then the camera will output that to digital threw the firewire port to your PC, i captured 25 Hi8's using the pass threw and it worked wonderfull, what camera model are you using right now?

I've got a TRV320E, I also have access to GDV800 deck, plus I own an ADVC 300 but still prefer the D8 route for 8/Hi8. If the analogue tapes are in good condition then you can get by without the TBCs.

But much of my work is with tapes of a very dodgy lineage.
Mind you I didn't buy the camera for transferring tapes I bought it for a trip overseas as it was a cheap factory second but it's never missed a beat. The demise of D8 is a very sad state of affairs, the real story about why it was doomed from day one is even more interesting.