Without being 100% sure, if your optimization concerns come from the fact that ony 4GB of your RAM was being used during the render of your video, chances are you have nothing to worry about.
The process of rendering falls almost exclusively on your processor. RAM is, in fact, not that critical to the process. And I believe the RAM setting you increased was under the category of “Dynamic RAM Preview Max”, a setting that ONLY monitors the amount of RAM usage for playing a real-time preview out of your timeline.
For reference, you do want to keep this at a reasonable amount, or you may experience your computer slowing down if you’re multitasking other programs (or even worse, Vegas itself will start responding poorly). However, with 12GB, I’m guessing you’d be quite safe setting this around half (6144) or even a bit more.
One thing that would be worth checking is the setting underneath this, “Maximum number of rendering threads”. This directly correlates to how many separate things your computer is rendering at once. As I’m assuming you’re using the 64-bit version of Vegas on a 64-bit version of windows (with an i7 920 at that), feel free to push this setting up as high as it can go. (The assumed risk is speed over stability, but I’ve never had a problem with my Core 2 Quad.)
Finally, 8 hours for a 2 hour video isn’t actually all that uncommon when you’re talking about HD footage on consumer level machines. The time factor really tends to rely upon how you’re encoding the finished product (i.e. a relatively uncompressed format has little done to it and will render much faster than, say a heavily compressed two-pass/multi-pass render), and if you’ve added complicated effects/plug-in chains (i.e. if you had crossfades and color correction done to every clip, it would take MUCH longer to finish).
Hopefully this clears a few things up.