no ones dumb enough to do that.. this is such a stupid question.. no one would take the risk they have 12 available pref for a reason ..
You would be very surprised... And also, it's not a stupid question. If you think outside the square, what if you put 4 preferences down and didn't get accepted into any of them? It's the same outcome, isn't it?
Back on topic, if that is the case, then they won't get any offers in either Round 1 or Round 2. As suggested, they could apply for an Irregular Offer or they could wait until the Supplementary Offer period, which is new for 09'ers. Supplementary offers are, if you've "applied" for it through VTAC, is after Round 1 and 2. During this round, there will be courses that still have vacancies. Basically, VTAC will give your name to the universities and the selection officers look at you and see if they want to offer you a place based on what vacancies are available.