[Sebastian] “As I have never done a Log and Capture before I am looking for advice as to what the easiest way to Log and Capture under these conditions. “
You BEST way is to FIRST record the Hi8 onto a DV tape in your Canon, then capture the DV copy.
Put the Canon into the VCR mode.
Put a new DV tape in the Canon.
Plug the audio out from the Hi8 into the audio connectors on the Canon.
Plug the video out from the Hi8 into the video connector on the Canon
(Its MUCH better if you use the S-Video connectors).
Start playing the Hi8 tape and hit Record on the Canon.
It will be more stable, you will have Timecode, and you will not lose any quality.
After you’ve made the copy, Just capture the DV tape into FCP.
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OTOH-
If you want to capture DIRECTLY (IMHO, not as safe a way to do it)…
Set up the same way as above, but don’t put a DV tape in the Canon.
Open Log and Capture > Capture Settings > Device Control: Non-Controlable Device
Clip Settings > Capture: Aud + Vid Audio Format: Stereo
Logging > start playing the Hi8 tape and hit “Capture Now”