Step 1: Name the coordinates. Let $x = \dfrac{8t}{1+t^2}$ and $y = \dfrac{4(1-t^2)}{1+t^2}$. We want to eliminate $t$ and find the curve these points trace. Step 2: Recall the classic half-angle substitution. If $t = \tan\frac{\theta}{2}$, then $\dfrac{2t}{1+t^2} = \sin\theta$ and $\dfrac{1-t^2}{1+t^2} = \cos\theta$. These are exactly the pieces appearing here. Step 3: Rewrite $x$ and $y$ with $\theta$. We have $x = \dfrac{8t}{1+t^2} = 4\cdot\dfrac{2t}{1+t^2} = 4\sin\theta$, and $y = 4\cdot\dfrac{1-t^2}{1+t^2} = 4\cos\theta$. Step 4: Form $x^2+y^2$. Then \[ x^2 + y^2 = 16\sin^2\theta + 16\cos^2\theta = 16(\sin^2\theta+\cos^2\theta) = 16. \] Step 5: Identify the curve. The relation $x^2+y^2 = 16$ is a circle centred at the origin with radius $\sqrt{16}=4$. Step 6: State the conclusion. Hence every such point lies on a circle of radius $4$. \[ \boxed{\text{Circle of radius } 4} \]