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I’m unsure

mp2 degradation?

I am converting dad's Hi8s to mp2, everything is going well, the only edits I have are cutting out blank/snow spots. Then I export it back to mp2.
The edited mp2s I've made look the same to me as the mp2 I captured. In fact, the files tend to be a tad larger, maybe because they defaulted to widescreen and stereo.
My question is: Are the videos I'm making going to have poor quality because I captured as mp2, edited the MP2, and exported as mp2? Is there a better, consumer-quality way to do this? Maybe I should have been capturing as AVI? Did I lose a lot of quality by capturing, editing and saving MP2s? Should I start over again?
Thanks.
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