GolfSteve in Calgary
Agree with 1/8" each side. Too little clearance and the door will bind. Too much clearance and your latch may not latch. I stacked two pieces of laminate sample from Home Depot as my spacers.
With a healthy 1/8" bevel on the latch side of the door the doors close and latch beautifully :-)
I just installed a bunch of doors, and left somewhere between 1/2" and 1" between the bottom of the door and the finished floor. I wish I had left around 3/4" for all doors as the door with 1/2" gap will bind if I have a floor rug near the door. The door with 1" gap is weird as the floor is very uneven in that area.