Capturing Hi8 Analog Video/Question

I have some old (early 90's) Hi8 NTSC analog tapes that I would like to capture for later editing/DVD authoring. I have the following hardware and software at my disposal for that end:
HARDWARE:
- Sony Hi8 VCR with S-Video and analog A/V outputs.
- Canopus ADVC-100 Advanced DV-Converter (external unit)
- Sony DCR-TRV900 MiniDV Camcorder with built-in analog-to-digital converter.
- ATI RADEON ALL-IN -WONDER 9800 Pro Video Card
- Firewire400/USB2 PCI Card.
SOFTWARE:
- Windows Movie Maker
- Adobe Premiere Pro 1.5
- Ulead DVD Workshop 2

Question: I know I have redundant hardware and software for the job, but what combination of the above mentioned hardware/software will produce the best quality captured video from these tapes? If I plan to keep the video in DVD-format, should I capture direclty to MPEG2 or should I use uncompressed AVI? What software settings whould I use for best quality?
Thanks.
(P.D.: I plan to burn 1 hour of video to each DVDR5 for best quality, is this ok?)