What I usually do if I have a target filesize is to calculate backwards to see how many Mbits/sec are available, subtract what bitrate I need for good audio (I don't remember this number off the top of my head -- a good google search should suffice), and then pass the remaining Mbits/sec as a parameter to the codec settings.
For standard computer playback, h264 or mp4 are good codecs to use.
If you need video that will be run through editing again, you might run into trouble.
Let's see... 2hrs 10min == 130 minutes == 7800 seconds. At 8.5GB target size that gives you a maximum data rate of roughly 8.92 megabits per second (1.12 megabytes per second). This should be enough for SD (DVD-ish quality) for h264/mp4 (I think), but for HD and/or editing-quality you might be out of luck. Also note that I have not split this into separate video/audio mbits/sec.
I recommend taking a short snippet of your video and encoding it using the above bit rates (multiply by 1024 to get kbits per second if that's what your codec settings take) and see if the resulting quality is acceptable.
Someone correct me if I'm wrong, but I think 128kbits/sec for audio is good?