Well I was running my 8ight-T 2.0 RTR the other day and the steering servo went crazy left and right and then quit working all together. I know that the servos supplied are kinda crappy but this was only my fifth or sixth run what the heck? So my question is the servo toast?

Most likely yes. Rtr servos are either hit of miss in my opinion. I uses you just got a "miss" one. I have had rtr servos that have been tough as nails, and others, with better ratings, that have stripped with normal driving.