Hi - I assume that you are talking about the plastic shocks.....
I agree - step 6 is your problem. You should NEVER pull on the shaft with the bottom cap unsecured - it sucks in air into the oil chamber immediately.
My method is as follows - once the shock is filled, and the top cap secure, I loosen the bottom cap and then "tap" the shaft with my finger a few times with the shock held vertical, and allow it to rebound slowly naturally under the internal pressure. Wipe the excess shock oil from around the o-ring, and job done.
You will find it difficult to get to zero rebound (if that is what you want) with the foam inserts in place and the top of the shock undrilled, because the bladder chamber + foam is acting as an air spring.
I now run alu shocks, and follow the XRay bleed method for them, and it works fine (i.e. bleed through the top cap). This probably would work on plastic shocks, but I've never tried it.
HTH
