since Hi8 is an analog format, it's not going to be able to write to a MemoryStick or flash media...and even if it could, the resolution of its still images would be pretty poor.
Go down to your nearest Best Buy and take a look at something like this as a basement level camera. Very solid and reliable design, very nice set of features, and able to shoot still photos and transfer them to MemoryStick, for seven hundred bucks. Nice combo camera. There are a couple higher models with this body style, but this one is a base.
Moving up from that, you might wanna look at something in a smaller body style like this, which also has MemoryStick. It's got a better CCD as well, so the images will be nice, but it's also almost twice as much. The next step up from that is the TRV30 which is back to the old body style, at about $1700.
For a couple hundred bucks more, you could then consider the TRV900, a 3CCD model with superior imaging over the others listed. But you need to draw the line somewhere, and say what's really important. Even the cheapest Digital8 is head and shoulders above even the best consumer cameras of just five years ago costing $1500+, so everything is relative.