Ok. So when I tried rotating my rotor the first time it was w/ brand new Brembo slotted rotors. I had 2 opposing lugnuts on it just to hold the rotor flat, but that wasn't enough. Once I put the rest of the lugs on I have enough clearance to look all the way down on both side of the pads (and they are even). I'm willing to bet it's only slightly more than 1/16", I don't have any feeler gauges so I can't tell for sure.

Now on my Brembo's it says 22.4mm (.896") MIN thickness, but Brembo (and other performance rotors) make their performance rotors thicker than stock, which would make the clearances tighter.

So, in other words, my rotors work, and it contraverses some of the things you said.

What's wrong w/ a 1/16" clearance? I doubt they would expand 1/8" (2 x 1/16") under load.

It's possible they just used a tighter clearance on 98+ to take advantage of wider rotor. Why else would they not have 2 part numbers for the calipers?