Showtimer,
There are several trains of thought on this question. The instructions posted on the SHO Times web site indicate that the middle is the way to go, that is .008 on the intake and .012 on the exaust.
Unless you are using the car for racing, this is fine. In "normal" use the one or two thousandths of an inch in additional lift will not make a noticible difference.
SDPATT, a highly respected SHO enthusiest, SHO owner, experienced SHO mechanic, and engineer by training, likes to go a little tighter. He shoots for .007 on the intakes, and .011 on the exhaust.
He cites his specs in metrics, but I think I read his thread correctly, that is he shoots for .001 tighter than the "middle". SD, if I misinterpreted you, please correct me (and forgive me). You should note that his SHO has over 265,000 miles on it. But, he does the maintainance on his SHO religiously. Do you?
If you are using the car for "all out racing", you still have to allow for heat expansion, but you want as much lift as possible, so the tight end of the specs would be used. If you do this, you can expect more wear and having to do it more often.
IMHO, if it is your "driver", take the middle spec. rangerj