Quad is four cores = 8 threads.
I have about the same CPU as you (I7 965) and I let TG2 only play with 4 cores = 50% of the CPU.
That way I can do other things with my pc like running two instances of TG2 at the same time, playing games etc

But if you want to give TG2 the whole CPU, it's up to you. But don't expect to do more than just look at the screen when TG2 renders.
The only time I would find it useful to give TG2 all the cores is when I'm rendering over night. *Hmm never tried that.
There's also a lot of topics about this in the forum. Use the search function and see what applies to you.
cheers