"my mastercam is defaulted to TOOL TOLEARANCE .008 AND STL TOLERANCE .001"
In Verify these tolerances have to do with the visual representation of the cut part. You know how sometimes the edges of a fine cut might look jagged in Verify? That's what this Tolerance controls. Set it to .0004 and the toolpath verification looks GREAT. This tolerance has nothing to do with the NC Code.
But There Trade-Offs. - It will take MUCH longer to verify the toolpath.
Mike Mattera
Tips For Manufacturing Training CD's, DVD's for Mastercam, SolidWorks, Inventor, G-Code Training & More
http://www.tipsforcadcam.com