Importing of Analog Hi-8 tape and then editing.  How?

I'm really confused by video editing. My son is turning 16 in two weeks. I want to create a movie of scenes from him growing up. Everything is stored on anaglog hi-8 video tape. Here's my questions:
1. I have an external dvd burner. I can hook my Sony camera up via RCA components (it doesn't have firewire) and burn a dvd of each tape. If I do that, will the dvd be something I can edit in iMovie 09?
2. Elgato has a video converter box which allows me to plug my camera directly into my Mac. Would that be a better (but not cheaper) solution?
3. How much disk space is required to import a 2 hour movie on tape?
4. Will iMovie work well to take selected segments from the tapes, DVD's, or direct imports or do I need something more powerful.
Thanks! I appreciate your help.

1. I have an external dvd burner. I can hook my Sony camera up via RCA components (it doesn't >have firewire) and burn a dvd of each tape. If I do that, will the dvd be something I can edit in >iMovie 09?
This will work, but you are adding another generation of data loss to the process. iMovie will not directly edit DVDs, which are encoded in MPEG2 format. So after burning the DVD, you have to convert the MPEG2 files on the DVD to a format that iMovie can edit, like DV or Apple Intermediate Codec. You could do this by using MPEG Streamclip (free) and the Apple QuickTime MPEG2Component ($20)
2. Elgato has a video converter box which allows me to plug my camera directly into my Mac. >Would that be a better (but not cheaper) solution?
I have an EyeTV Hybrid from ElGato, and it works well. ElGato EyeTV allows you to export the file to iMovie in either DV or AIC as appropriate.
Another way would be to get a digital 8 camera from EBAY. Most digital 8 cameras will convert hi 8 to DV, and you can import via firewire. Check this before you buy to make sure it has the conversion feature.
3. How much disk space is required to import a 2 hour movie on tape?
It will take about 8GB to import into EyeTV. When you export from EyeTV to iMovie it will get bigger.
4. Will iMovie work well to take selected segments from the tapes, DVD's, or direct imports or do I >need something more powerful.
iMovie does well at this. I have imported events from VHS, hi8, 8MM film (via VHS), DV, and AVCHD and combined them into one movie.

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