<<So with the engine hot, I rotate to TDC #1 and set #8 exhaust and #2 intake to .030.>>
That's correct - when you set the engine at #1 TDC, make sure it's on the compression stroke, with both valves closed on #1 cylinder; if both rocker arms on #1 aren't even/parallel, you're at #6 TDC and need to go around once more.