dead button confusion

[dfscott]

Had the following situation come up in a tourney last night. I'm not sure if we handled it correctly -- the particularly questionable part I put in bold, but let me know if anything else was wrong.

This is a little hairy, so stay with me...

Hand 1) Seat 1 is the button, 2 and 3 post SB and BB respectively. Seat 3 (BB) busts out.

Hand 2) Button moves to seat 2, no SB, seat 4 posts BB. Seat 4(BB) and Seat 5(UTG) bust out.

Hand 3) Button moves to (empty) seat 3, no SB, seat 6 posts BB.

Hand 4) Button moves to (empty) seat 4, seat 6 posts SB, seat 7 posts BB.

Hand 5) Button skips (empty) seat 5 and moves to seat 6, seat 7 posts SB, seat 8 posts BB.

Did we handle this correctly?