After installing a new QAD rest and setting the nocking point at 1/8th inch high, I proceeded to shoot through paper. I got a tip-high tear in paper, so I lowered the rest. It continued to tear tip-high and we continued to lower the rest until it was nowhere close to being right. Then we went back the other direction and set the rest at perfectly square and got the same result. I also had two other guys shoot the bow and got the same results. The tear is about 1/4 inch high. The former bow tech that worked at that shop said that is a good tear because that is a "normal" tear from a fall away rest. I am shooting a 29" draw lenth on an AlphaMax 35 bow set at 70 lbs. The arrows are Gold Tip 350 CAA's cut at 29 1/4 inches with a 100gr tip for an overall weight of 428 grains. There appears to be no fletching issues with the rest either. What do you guys think? It shot a perfect tear through paper at 20 yards and it is shooting lights-out at 30 yards.

It would be very rare to NOT get a bullet hole through paper at 20 yards as the fletching should have straightened the arrow out by that point, or even well before that point. The only exception would be if the arrows were grossly underspined or there was somehow some serious fletching contact.

!/4" high isn't all that bad, but moving the nocking point or rest should make some change. Being as you're not getting a change I would do something like dropping the bow weight to 65# and see if that helps. A 340-350 spine just might be too light for your specs.