From the day I got my machine before even opening SSMS 2008 they had installed on my machine, I had installed 2012, so I don't know if intellisense ever worked on 2008. However it is working on 2012. Did 2012 overwrite some dll or something in the registry?
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Yes. SSMS 2008+ should have intellisense when connecting to a 2008+ SQL Server. If you do not get intellisense for a 2008 database I suggest you do a web search or contact Microsoft support.
Here's one MS support article that illustrates a know cause regarding VS2010 SP1.

D Stanley
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