I would recommend deadlifts, with the caveat that while they are completely knee-friendly, you have to be careful to protect your lower back by practicing good form and engaging your core. If you are not careful, you can hurt your back with this exercise.
The "romanian deadlift" variation targets the hamstrings slightly more than the bent-leg variation (which is a bit more like a squat), and is probably safer for your knees.
Here are some tutorials:
http://www.muscleandstrength.com/exe...-deadlift.html
http://www.bodyrecomposition.com/tra...l-vs-sldl.html
Here are good step-by-step slides showing proper form (albeit by someone with very flexible hamstrings):
http://www.nsca-lift.org/videos/Roma...romanian.shtml
You probably need a lot more weight than 8-lb dumbbells to adequately challenge your hamstrings though.
I have just started lifting again for the first time in a long time and I was able to do 3 sets of 6 deadlifts with 90 lbs, although 40-60 would probably be enough to challenge you if you did more reps.
I start with the bar on the floor, because my upper body is not strong enough to sling around 90+ lbs while racking and unracking. I put the plates on the bar and remove them from the bar with the bar on the floor as well, so I can rack/unrack with an unweighted bar.



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