We've run them exactly as you describe without issues, 160 or 125, reasonably tight--we just use a laser points for each top corner on the pocket. I have shimmed them a few times, but it's a PITA to do it on ten stations.
I used to run above pockets lower then 3/4", but got complaints--apparently the guys cigarette packs were then covering up the bottom of the logo... ::)
I do it just like Frog on the manual--no laser jig over there. :(