I am having one heck of a time programming my V8000. Yes, I know, welcome the club....
...Do I need to set it to R2 to get the tone to transmit to open the repeater?
Yes. Another thing I noticed also was that it made things easier to set up the tones for both transmit AND receive. Some Icom rigs require that for the tone to be transmitted--I don't know why. For example, my T7H handheld won't open a tone controlled repeater unless the set for both transmit and receive tones.