Hi Pepper, it sounds like you made the correct ruling from what I have read here, it is irrelevant who is physically dealing the cards, although given it was a self deal and i presume you are using the 'button deals' rule the player who has moved into seat 8 should of been given the deck to deal the hand, from what I have read it is a 9 seat table with seats 8 and 9 vacant before the hand starts, with the button in seat 9, so therefore the balanced player was moved to the first seat clockwise available from the BB, which is correct under TDA rules.
Regards
Stuart