Bars 1-4: 1st couple advance towards each other, 1st man pulling right > shoulder back, take nearer hands (lady on man's left), and set to 2nd man.
I agree with your 1-4
> > > Bars 5-8: 1st couple turn right hand about three-quarters, 1st man pulling > right shoulder back again, take nearer hands (lady on man's left again), > and > set to 2nd lady.
Bars 5-8 - not that in mho.
I think the instructions (Purple Miscellany Vol. 1) are clear- Not a RH
turn. 1st man "leads" his partner around "by" the right (not 'with right
hands'.) to face 2nd lady. So I think a 'near' hands 'lead'. It needs to be
strong lead too as 1st lady has a bit of a ways to go in just two steps. It
is a fine line between 1st man just pivoting on the spot as his partner does
the dancing and 1st man dancing so much of a track that 1st lady, being on
the outside with an even longer track, is late to the next setting.
> > > Bars 9-12: 1st couple turn right hand a little over once round to original > places.
It works and I won't disagree. Note: I do consider it open to interpretation
though. The instructions here are specific in regards to 1st lady "1st man
turns his partner with RH back to her place." and say nothing about 1st man
but are specific about the 'couple' returning to places after their LH turn
on bars 13-16.