I use Media 100 lxi editing system. I can bring any analog into the system via RCA or S-video. Lots of times customers ask me to put their old VHS tapes into programs that are eventually made into DVD programs. Because VHS has the lowest video signal and has timecode breaks that you can't notice or that a VCR does not notice, I can't bring the VHS media in directly; my editor will stop digitizing when it hits one of those timecode breaks, and that's often.
I first transfer the VHS media to DV tape, then digitize the DV tape into my system via firewire, S-video, or RCA; no problem. Now I can edit into a program and create any media form I want: another VHS, back to Hi8, to DV tape, or burn a DVD. The disadvantage: The process has to be done in real time, and that's why I charge more when a customer wants me to handle VHS.
Perhaps you could just dump your raw Hi8 to DV tape then bring it into pinnicle. You won't even notice the generation loss. My $.02