After a lot of messing around, and trying all different kinds of combinations of settings, for whatever reason, this seems to be the best option (at least for me):
---
BMCMicrophone Input: 0
Ch 1 and Ch 2 Input Levels: Mic
Ch 1 Input: 28%
Ch 2 Input: 28%
Headphone Level: 90%
302XLR Atten. Level: -40dB
Everything else is factory default.---
When sending out "factory default" tone (1kHz tone at 0dBu) from the 302 I get the following...
This is what the signal looks like in UltraScope:

- UltraScope
- ultrascopes.png (588.22 KiB) Viewed 14921 times
This is what the signal looks like in MediaExpress:

- MediaExpress
- mediaexpress.png (742.06 KiB) Viewed 14921 times
This is what the signal looks like in Audition AFTER applying the "Repair DC Offset" favourite:

- Audition
- audition.png (178.52 KiB) Viewed 14921 times
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Here's some interesting things I've discovered:
- It seems the DC Offset really messes with UltraScope. For example, if you're not sending ANY audio to the camera, the meters will still read -25dB in UltraScope. However if you capture this audio, and then remove the DC offset - you'll see it's actually at infinity. Given this - UltraScope isn't really helpful at all for lining up reference tone or monitoring.
- MediaExpress also seems to have a mind of it's own. Some times the meters seem to be acting correct - other times, they're way off.
- The headphone jack on the camera is useless. When you compare what's being recorded to what's being monitored via the headphones - you can notice such a big difference. You loose a lot of the lower-end when using the headphone jack.
- The camera is incredibly temperamental and easily confused. If something SHOULD be working, but it doesn't seem to be - chances are you're not going crazy. A simple re-boot will fix most issues it seems. In fact, with the current firmware, I would go as far as to say each time you change the audio settings, you should exit the MENU then restart the camera to make sure they have actually been activated.
- Maybe I'm doing something really stupid - but no matter what I try with the 302, I still can't get a decent LINE LEVEL feed into the camera. It's simply not loud enough.
I really hope BMD is listening, and has a firmware update that fixes all these audio issues soon!
In the meantime however... the above configuration seems to be working, and it actually sound pretty good.
When I get some spare time, I'm going to compare the actual recording quality between a 744T and the camera, and see what the difference really is. But for now... ignorance is bliss.