Flip -- welcome to the digital world.
Few thoughts to throw your way.
1) New stuff you may need --
mics>sbm1 -- Don't the nak mic cables end in a 1/4" phono plug (mono)? -- if so, you should be able to plug 'em directly into the sbm-1's mic input. Thought though, generally it's better to run mics into the line input on the sony sbm-1, if the mics put out a hot enough signal to get good levels -- the sbm-1 has female rca jacks for its line input, I'm sure radioshack can hook you up with an adaptor for this. My first thought -- if it ain't broke, don't fix it. i.e. get the new setup running with a minimal amount of additional parts and don't upgrade mic cables 'till you need to.
power -- I see in the picture that the setup comes with an external battery (homemade from c cells?) -- I'd strongly recommend starting off using rechargable nimh aa batteries. One set in the sbm-1 and one set in the d8 should last an entire show. That said, I always switched to a fresh set when I switched tapes (BTW, always use 60 meter dds or 2 hour audio dat, don't run 90 meter/3 hour tapes if possible -- imho) and thereby avoided ever having a battery concern, let alone a battery problem.
Patch cable -- it looks like yours comes with a sony digital patch cable that will accept a digital in but will not pass a digital out. Some folks, oades included, modify these cables so they can supply both a digital in and a digital out -- you can get around this issue by buying a splitter and running the signal patch>splitter>you (and the other end of the split patch to somebody else) or by putting your deck at the end of the patch chain.
2) differences in taping analog v digital -- one simple difference, if you go above the "zero" on the d8's vu meter, you're clipping, period. So, work to keep your levels at just below zero. The sbm-1 has "clip" indicators for each channel, they actually start to briefly/faintly flash at -2 -- ideal level setting occurrs when the sbm1's clip lights flash faintly on occasion (say a few times per song) -- solidly lit clip lights mean clipping, but don't stress it, you need to clip pretty hard/often for it to really mar a tape.
3) final piece of advice, set it all up in front of the stereo and experiment around, better to get everything running a-ok in a controlled environment than to try to figure it out as the opening notes are hitting you.