The FAA is pretty understanding of a lot of methods, provided that you are consistent in which method you use. However, I would pay attention to actual clock time from start to shutdown as 1.2 is probably shortchanging you a little.
When I joined a club that charged by tach instead of hobbs, I kept track of the difference for a while because I was interested in how I was breaking even vs renting. I found that the actual ratio varied between 1.08 and 1.4 depending on taxi time, power setting, and distance flown. A flight with lots of pattern work or maneuvering would be at the high end, while a long cross country with little taxi time would be on the low end, especially if flown at a higher RPM.
Show me where in the FARs the definition of Out is.
Nope. It counts when the aircraft moves under its own power for the purpose of flight. It has nothing to do with chocks.
The prop is part of the aircraft, right? And it is moving, under its own power?
Regardless, the FAA has long accepted Hobbs time as one of the acceptable ways to log flight time.