Does that mean my PC is not powerful enough to do this job?

Windows XP
Version 2002
Service Pack 3

Intel Core 2 Quad CPU
Q6600 @ 2.40 GHz
3.25 GB RAM

GPU NVIDIA GeForce 8800 GTS 512, Driver version 6.14.11.6906

Edited footage from a Canon HF S100
Sony Vegas Pro 8

Render As
1920 x 1080 60i, 10 mbps

Do you guys think I have to upgrade my rig?
Or is it Vegas Pro 8 that needs upgrading?
Windows Task Manager shows that Vegas is running, but the Performance tab shows barely any activity (0-3%), so it appears that Vegas is NOT doing anything.

Thanks,

she's crashed mate.
Try rendering a small section first, how long is it?

It's 10 minutes long. I think I'll try to render it as something of a lower resolution.
Thanks,

Be sure to check out Ed's post regarding render problems:

http://www.dvinfo.net/forum/what-happens-vegas/485442-im-having-problem-vegas-what-should-i-try.html