You are on the final Build of VP8c.

I've read through the White Paper on it and can't see any reference to what you are experiencing.

Speak to SCS to get a view on what you now need to do.

Here are the final Added Features & Bug Fixes:-

Notable fixes/changes in version 8.0c

Added support for rendering 1920x1080 AVCHD video.
Added XDCAM HD422 support.
Added widescreen option for AJA print-to-tape.
Added presets for AVCHD stereo output.
Added ability to save markers in AVCHD output.
Added ability to read certain MPEG-2 files with AC-3 audio.
Added support for importing video from AVCHD camcorders (File > Import > AVCHD Camcorder).
Added support for importing video from Sony CF card recording devices (File > Import > Memory Recording Unit).
Added support for Nikon D90 MJPEG movies.
Added support for XDCAM partial import with PDW-U1 drive.
Enhanced Trimmer window with integral video monitor, separate external monitor, Enable Timeline Overwrite, and Fit to Fill modes.

When the Show Video Monitor button in the Trimmer window is selected, video that you preview from the Vegas Explorer and Media Manager windows is played back in the Trimmer. Because the Trimmer is placed in the same window dock as the Explorer and Media Manager, you will not see your video preview. To preview Explorer and Media Manager video, you can drag the Trimmer to a new dock group, or you can turn off the Show Video Monitor button to preview in the Video Preview window.

Enhanced XDCAM Explorer pane with double-click and keyboard Enter key behavior that matches the Vegas Explorer pane.
ProType Titler: added ability to copy envelope points and curve blocks using Ctrl+drag.
ProType Titler: added ability to save effects and add/replace effects via drag-and-drop.
Added support for opening Vegas Movie Studio 9 projects.
Improved the number of MPEG-2 clips that can be active on a timeline.
Improved HDV/AVCHD reading.
Improved reading for certain 3GP and MP4 files.
Improved device resolution choice for Windows Secondary Display when set the Display mode is set to Automatic Size Settings and the project is larger than the display.
Fixed a problem that could cause masked video to appear incorrectly on an external monitor.
Fixed a problem reading certain AVI files using DivX with MP3 audio.
Fixed a problem reading certain Xvid format files.
Fixed a problem reading some FLAC files.
Fixed an issue saving markers in MXF format.
Fixed a problem rendering to certain WAV/WAV64 variants
Fixed Paste Event Attributes so it doesn't create phantom transitions that are then called out as missing during project load.
Fixed a crash with the Matshita UJ-832D DVD-RW drive.
Fixed issues that prevented Wave Hammer and Acoustic Mirror from functioning properly in some cases.
Fixed duplicate file numbering of MP_ROOT MAS (SD) and MAQ (QVGA) files when using the Export to PSP™ command.
Fixed an audio buzz that could occur with certain combinations of automated track muting.
Fixed an issue with SDI capture when using non-dropframe timecode.
Fixed an audio clicking issue with certain 29.97 or 59.94 fps MXF clips.
Corrected ToolTip display for edited fade lengths when the timeline ruler is offset.
Changed Cinescore detection to look for Pro version first and then Studio version.
Fixed an issue reading certain MXF metadata.
Fixed an issue with the Height Map plug-in not functioning properly at certain settings with high project resolutions.
TWAIN initialization now occurs when Get Photo is used instead of during Vegas startup. This change prevents crashes due to bad drivers.
Fixed a potential crash that could occur when switching to Markers or Regions view in the Edit Details window.
Fixed eyedropper color picker under Windows Vista Aero Glass.
Fixed a problem with long startup time when a computer is connected to a network but not the Internet.
Improved scanning for VST plug-ins.
Fixed a bug where VST effects would not always be notified of sample rate changes.

Have you updated any GPU Drivers lately?

I have not touched my system from an update perspective. And this is the first time I've had any crash condition/error in Vegas Pro 8.0. Help???

Vegas 8.0c is rock stable for me.
It also reached its end-of-life 2 years and 9 months ago. That's when development ceased. So expecting a patch that long after the fact is a bit fanciful.

Now, how about some system specs, file properties, Quicktime version, list of plugins in the project, that sort of thing, so we can help you?

Have you tried eliminating the .avi from the timeline or turning off plugins?
A divide by zero error is sometimes the result of incompatible plugins or "garbage" codecs on your system. Don't know if that applies to you.

This is only going to help going forward, sorry, and it probably is the obvious but you seemt to have ignored it.

Always make incremental backups regularly.

Your project file is stored in RAM and is as I've come to realise regularly written back to the HDD even without doing a Save. An error in RAM, a finite risk without using ECC RAM can corrupt the file, programmatic errors can also cause things to go bad. End result is a corrupted project file that's probably going to be impossible to recover. Incremental backups are your protection against these kinds of rare issues that always seem to happen when they will cause the largest amount of grief.

Bob.