OK, figured it out....
...so I am posting what I found in case someone else has the same "problem" as me in understanding the bad translation of a manual that we've all come to know from Walkera et. al.
Setting the rudder limits on a Walkera 2702V rx:
When setting the left and right rudder limits it is important to know that you are setting the position of the servo arm, not the position of the stick which is the case when setting the AIL and ELEV limits. When setting the left rudder travel you gently push the stick to the left and "miraculously" the servo arm keeps creeping after you stop the stick, which was what was throwing me off.
NOTE: It doesn't matter where the stick is when you press the button, just where the rudder servo arm actually is when you press the "SET" button.
In case you overshoot which is very easy to do thanks to the creep, all you do is bring the servo arm back to where you want it by moving the stick to the right as needed. Remember - all that matters is where the servo arm is when you press "SET", so once you get it where you want it and press "SET" you are recording the actual position of the servo, not the stick... The same holds true for the right side.
Anyways, I hope this helps someone in the future!