what is the difference between a digital camcorder and a Hi8 camcorder?

They use different tapes (Hi8 is bigger and DV is smaller)

Digital camcorder uses digital format '0' & '1' to record the videos. There is another format called Digital8 ALSO uses the same format.

Hi8 uses analog format.

Digital8 actually is a transition product that it actually uses digital format to record videos but using "Video 8 tapes" , So Digital8 camcorder can playback Video8 tapes and at the same time, it records and playbacks Digital8 format tapes.

I recommend you to buy a Digital camcorder (for a smaller size of camcorder and tape). Digital cameras record the images/film onto a hard drive or flash card.

Hi-8s record them onto small video tapes.

Digital camera images are usually better quality than HI8 at a lower end of budget, and are a lot better if you would like to edit/post your videos on the computer. Hi8 is about the best analogue video tape recording system for camcorders that you get for consumer use.

Then came digital recording techniques where the analogue video signals are turned into a stream of '0's and '1's before recording them onto tape or other recording medium like flash or mini dvd.

Digital recordings are much more consistant than analogue. It either works well or not at all. Digital recording also offers potentialy much better pictures too. Hi8 uses analog recording method, which means that the images are recorded as signals. Digital uses a numeric recording method, which means that the images are recorded as data. Almost like the difference between old audio tapes and CDs.

Digital Hi8 are digital camcorders that use a digital recording image on Hi8 tapes. Those camcorders, can also read old Hi8 analog tapes (Backward Compatibility).

So if you want to buy a camcorder this is how to choose:

1- Low budget ==> go for Hi8 analog

2- Hi Budget ==> go for Digital

3- Hi Budget with old Hi8 tapes or Medium Budget ==> go for Hi8 Digital.