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Hi Neil,
I went from Hi8 to Digital8, before eventually moving to MiniDV.
You are wrong to say that they use similar tapes. In fact, they use indentical tapes! So if you've a load of tapes that you haven't used yet, you'll be able to carry on using them in the Digital8 camcorder. My Digital8 camcorder is able to play my old Hi8 tapes. Not sure if this is the case with all models, but worth checking out.
As far as the diference in quality between the two is concerned, on paper, Digital8 is a higher resolution, so should be better. Quite how noticable this diference is in reality is hard to say.
I'm currently going through all my old Hi8 tapes, putting the footage onto DVD. To be quite honest, whilst they are not as good as my MiniDV tapes (which are better than Digital8), they are still pretty good and to the casual observer, I doubt few would notice the difference.
Hope this helps.
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