Yes, you can. You're going to need some hardware to plug the camcorder into and some software to capture it.
You'll need either a computer TV card with a video-in facility or a video card with VIVO (video in, video out).
Then you'll need a lead from the Hi-8 camcorder from video out to video in to the computer and also an audio lead from sound out of camcorder to sound in on your sound card/onboard sound.
I use Pinnacle Studio 9 software to capture video/audio from a VHS recorder and also from an old Sony Hi-8 camcorder. You can also edit your captured footage with this program. Pinnnacle has the ability to record direct to DVD but I usually use Nero V6.0 for that.
It can be a little daunting at first, but I've made many DVD's from captured VCR & camcorder footage.
There is free software avaialable on the net, do a Google for doom9, a site dedicated to video/DVD. but it's quite complicated to use.
At the other end of the scale, there's Adobe Premiere software, but that's expensive.
If you're serious about undertaking this task, post again and ask away, I'm not that knowledgable on the subject, but I have managed to do it.