Recoil Rob,
I think you should add twice the .005 to the .349". This will give you .359" It is hard to "see", but .005 taken from the radius, would be .010" from the diameter. It is the same as "turning" something on a lathe- a .005" cut reduces the diameter .010"; in other words .005" off each side. A simple test would be to insert a bullet into the neck of a fired case. Whichever diameter bullet that will easily enter, can be used, even if a little over groove diameter. As long as the neck has room to expand/release the bullet( normal cup and core-not solid)a slightly oversized bullet doesn't excessively drive the pressure up. Once the parallel part of the bullet has traveled it's own length in the barrel, it has been sized to the groove diameter. This occurs while the pressure is rising.
Mike