OP here, a somewhat embarrassed one, I might add. FrankenMauser, I think you are partially correct, in that it was not operator ERROR, but operator STUPIDITY on our part.
I re-examined the target, which was a 3'x4' 100yd crossbow paper target.
The #1 buck payload was right on target, but made such a small hole(1.5") in the paper, that it got mixed in with holes from the 00 buck. What was hitting a foot high was the shot cup.
I also tend to agree with nightwolf re: a little bigger pattern at close range. Actually, the #1 doesn't pattern at all at close range.
Thanks for all of your input, and feel free to laugh at our misinterpretation.