Worse than double counting, multiple counting.
To illustrate why this method is wrong, consider an even simpler situation. Suppose that you have just four people and you want to split them into pairs. How many ways ?
If you employ the method used for the eight person problem, I guess that you would say that the number would be 4C2*2C2 = 6.
However, if you call the people A,B,C,D, you can see that there are only three possible pairings (AB and CD), (AC and BD) and (AD and BC). The basic reason why the first answer is wrong is that each grouping has been counted twice. (AB and CD) and (CD and AB), for example, are being thought of as being two different pairings, meaning that that particular pairing has been counted twice, if that makes sense. The 4C2 = 6 contains AB, AC, AD, BC, BD and CD, but both AB and CD produce the same split into two pairs.
Try the eight into four groups of two again.