I haven't totally figured out thesquare rule thing yet, but on the forum is seems like we've come in a circle. As far as I can tell square rule is the same as mill rule with housings and chalk lines instead of straight edged timbers. I just haven't figured out how you make sure the bottom of the housing is perfect.
For instance lets say that you want a brace centered on a post with a half inch deep housing. Let's say the post is 8x8 rough sawn stock. The tennon is 4 inches, the mortise you will go deeper so the tennon dosen't bottom out. The problem is the side of the brace end with no tennon is supposed to rest flush up against the inside of the housing. The only way I can think of getting a flat surface is by routing it out, which means that your original face would have to be your reference making the housing redundant...
do you follow me??... I'm not sure you should!!

Carlos