There are two methods to degreeng a cam in:
1) Intake Centerline Method - Must have Symetrical lobes for this to be correct.
2) Degreeing by using valve timing events which is where the 0.050" comes in. Paul was confused...this is the correct way to do it and is more accurate. The 0.050" corresponds to the lift at which the degree measurements on the cam lobes are measured at. The IC method uses a 0.050" measure to but it is for a different purpose.
I did more research on this than I did my entire senior year in college combined
If you get the Summit Cam Degree Kit, do NOT use the instructions for degreeing provided in the kit. Go here:
http://www.cranecams.com/pdf/803.pdf
Read that a minumum of 3 times until you understand what the process is. You will see they show both methods and the 0.050" method is the more accurate way for the asymentrical lobe cams. This is the way you want to degree in your cam if it is from Ed.
I degreed my FTI cam in and it was off by 3 degree when lined up dot-to-dot...this was down 3 times to verify. I advanced it two degrees and it is pretty much close to being dead on.
If you have any questions concerning the process, shoot me a message and I can help you out. You will have a much better understanding once you read those instructions and get the kit. You can mock it up and it will make a lot more sense, trust me.