Palmetto 800 is an "APCO-16", or analog 3600bps control channel Motorola trunked radio system. What does that mean in laymen's terms? Pretty much any trunktracking scanner, from the very first ones made to the new models released recently, will track the system. So you have a lot of options.
That said, there are some digital talkgroups on Palmetto 800. I'd say it's probably 1/4 digital, 3/4 analog. Pretty much any agency to join the system in the future will use digital talkgroups. And one day, the whole system will be digital (APCO-25 with a 9600bps control channel).
So it's really worth your time to determine exactly which agencies you're interested in listening to. If you expect to only listen to a few specific agencies (SCHP, for example) and not much else, you may not need a digital scanner. If you expect to want to listen to any and all talkgroups and many different agencies, then it's a good idea to get a digital-capable scanner.
I too am biased toward the GRE-made radios, like Larry. I have used a PRO-96 for quite a few years now and have been very pleased with it. I anticipate upgrading to a PSR-500 (like the Radio Shack PRO-106) very soon. Either are good choices. The PRO-96/2096 being on sale now is a great value for a digital scanner.
Uniden also has several digital scanner models available, with similar prices. It's like the choice between a Ford or Chevy truck, choosing between Uniden and GRE. Both have their benefits and merits. Lots of threads in these forums that offer advice both ways.
You'll also want to consider rebanding when purchasing a scanner. This is something that will affect Palmetto 800 and other Motorola trunked systems in the next 12-24 months, most likely. It may render some of the older (2yo or more) trunktracking scanners ineffective for monitoring 3600bps Motorola systems.
Knowing what area of the state you are (or intend to scan in) would allow us to give you more specific information.
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