Just for a recap:
I finished with about 2k cases of .223. I found about 15 or so that were separating to the point of being paper thin and another 100 or so that had some stretching.
All in all, I feel pretty good about the technique. BTW, case thickness has a slight taper to it on the inside, thick near the head, and thinner near the neck (roughly .040 to .050 difference). When you check the cases you move the case through the dial indicator and probe and watch for the dial indicator to swing around in a nice smooth arc.
The cases on the verge of separating are easy to find, and you could probably find them with a hooked paper clip, however the tool makes it very easy. Basically, when you find a case that is on the verge of separating the dial indicator swings around and when it reaches the flaw it drops into it and makes a quick .010 swing. You can also feel it with the probe, so there's no missing the real bad ones.
The others that are stretched excessively are found by watching the dial indicator sweep around, stop moving (while your still pulling the case through), and then start again. The instructions call this normal stretching but I took the cases out anyway.