Shaun - it's a geometry thing. To get a fore/aft movement of 0.008, or whatever you are targeting, you'll actually see a longer distance on the dial indicator if it is pointed up at an angle like that. It's like two sides of a triangle. If the dial indicator is at a 45 deg angle to the cam shaft, and the dial indicator is showing 0.008" when you move the cam back and forth, the real end play (the actual back and forth movement) is 0.0057". The closer you can get the dial indicator to horizontal (ie no angle between it and the cam), the less error there is in the measurement.
John