Gents,
Correct just put the card between the probe and the harmonic balancer per your picture. Insert the probe till it hits the card, then remove the card. If your probe is damaged/weak, you may have to use something thinner like a feeler gauge if you do not get a reading after using a business card. Concept is not to grind the probe against your harmonic balance and damage either one.
Fordw60s many on this site suggest they like the timing better at 9.5 BTDC VS spec of 8.5 BTDC at 2000RPM. So your call if you want to unhook all your lines for 1 more degree. But it may also help take the pressure off the lines if you twisted the IP very much. Which means they are less likely to crack due to stress.
Just a FYI, the reason when using the probe for a timing signal (VS the aftermarket timing light) you have to have a 20 degree offset is the probe hole is not at TDC. (Its 20 degrees off TDC.) So per the picture above when using the probe you have to set a 20 degree offset. Then the meter shows the actual timing of the motor, not the timing of where the probe is.
Also keep in mind when using a aftermarket timing light (On the metal bar of the meter.) VS the pickup probe, you do not need the 20 degree offset because the mark on the harmonic balancer is at TDC. So the timing light shows the real/actual timing via the timing mark on the harmonic balancer. The concept is to use a timing light with advance because there is no 8.5 BTDC mark. So you advance your timing light to the 8.5 or 9.5 BTDC, then move the IP (Not while running.) till the timing mark is on the TDC mark at 2000 rpm. That means you are at 8.5 or 9.5 BTDC. Many on this site have stated not all timing guns work well with the metal loop, so if you do not have success try a different model or brand of timing gun.
Your experience with the shop again confirms what so many on this site suggest. Local repair shops either never bought a timing unit, broke it, and did not replace it, or perhaps don't know where it is. So many mechanics simply try to time by ear and then test drive to seek a happy medium. But as Fordw60s found out, that really does not work in most cases. So it really does make sense to spend a couple hundred to buy this timing machine if for nothing else to give to your local shop so they can do it right!
All the best!