Best method for converting 8 mm cassettes for long term storage

I have approximately one hundred 8 mm video cassette tapes that I would like to convert to another format for long term storage.  I captured my first tape today from my camera Sony DCR VTR 520 which is a digital 8 mm camera.  I was not planning to convert the files to DVDs at this time but just keep the avi file on the computer.   The video was just over 2 hours long but the file ends up being 27 GB.   I expecting it to be around 8 GB like a 2 hr DVD but I guess its not the same.
The 8 mm tape I converted was from an very old 8 mm camera which I no longer have (1990).  The camera used to capture from is a VTR 520 which is actually a Sony digital 8 mm, which can play back standard 8 mm.  I used CS3 on my old computer with standard project settings for DV NTSC 29.97 f/s.   I currently use PE10 so I could use either program.
What do other people use to convert and store videos on??
If I want to keep them as avi files will I have to live with these large file sizes?
I did a search on the forum and found titles that talk about this subject from a couple of years ago but when I click on them they don't come up.   How do you see these older threads?
Any help would be appreciated.

JMJarige,
The only potential problems with this workflow are:
DVR units (I have a Panasonic, but this is pretty much across the board) seldom produce a 100% DVD-compliant disc, and as most add a rudimentary Menu & navigation system to the disc, produce a first VOB (where the Menus & navigation are located), that is tough, if not impossible to directly Import.
In the production to DVD, there is MPEG2 compression applied. If one edits that material, and then they output to any compressed CODEC, the quality loss is easily seen
When I convert from VHS for a client, I create a DVR DVD disc, for their archives (in case the tapes die), but then Capture to DV-AVI to be edited to a DVD-Video. The client gets two sets of discs - one that is produced by the DRV, and then one that is the finished edit of their tapes. For me, it's a two step process, but gives them a backup, plus a finished product.
Good luck,
Hunt

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