Could the number eight in this scene be a reference to the alternative reality in episode 18? We know that the Fireman already knew about the alternative reality from his scene with Andy in episode 14 (he shows Andy the electrical pole outside Laura/Carrie's house). If Jeffries also knew about the alternative reality, then the eight flipping over could refer to 'crossing over' to the other reality. The dot moving back to the same position could mean that Judy will be in the same place once Cooper crosses over (i.e. the Palmer house).
This would mean that crossing over to the alternative reality was always part of the plan to get to Judy, and that when Judy sent Laura there, she would also go there herself - and be found in the same location. It would also mean that Cooper, the Fireman, Jeffries and Major Briggs knew that Judy was in the Palmer house in Twin Peaks (in the main reality) and that she was possessing/controlling Sarah Palmer in some way.
Thanks! It's got me thinking that the alternative reality must have existed for quite some time. When I first watched the episode, I kind of assumed it was created either by Judy or as a consequence of Cooper altering the timeline. I don't think that's the case now though. I think it's more like a parallel reality that's maybe 'always' existed - a bit like the lodges.
I took it to mean infinity, time and time again, stuck in an endless loop like a scalextric race car set. I was intrigued however when the little thing moved around to about 4 o'clock on the bottom loop. It seems that was the time Laura was on James' bike heading toward her death.
I think the infinity interpretation makes sense too - maybe there was more than one meaning there... Also my initial take on the ending was that the story would keep playing out in different realities/dimensions and that there would never really be an ending as such, although I'm not quite as keen on that interpretation now. That's a good spot with the time though! I need to re-watch that scene at some point.
I think the fireman made the other reality of odessa in ep 8