I agree with HawksCoach, obviously since I was the first to say put it back on the clock

..My thinking is, the ball isn't legally touched because the toss isn't "legal" for lack of a better word. When the referee realizes that the toss is bad, it becomes a dead ball regardless of the whistle (whistles don't make the ball dead except for inadvertant whistles)..since the ball is dead it is not "legally" touched and therefore the clock was started improperly, through no fault of the timer but still improperly...so I say reset it to 8:00 and let's go again..besides it is the "right" thing to do