Yeah, remember that one track on tape = one sound wave, whereas in order to keep panning you need a stereo "track", wich is actually two mono tracks, one panned L and one panned R. You can go quite far with this on 1/2 inch 8-track if you make intelligent decisions about what to keep in mono.
EDIT: Here's an example from something I'm working on, 1/2" 8-track just like you. I've also learned a few tricks and some things to be careful about from doing this pretty frequently. A bounce can sometimes be a very good thing- I really like its effect on strings, for instance. It just makes them sit together better- the closest thing I can compare it to is a mix before and after mastering. It's subtle, but definitely there. It can also sound great on vocal harmonies. That said, bass frequencies degrade first, as do transients, so try to record drums and bass without any bounces if possible. The bass is bounced in this song, but only becuase it's very low and not terribly important.
1. (Panned hard left) Accoustic guitar, clean electric, ambient synth, brushes on snare
2. (panned hard r) Accoustic guitar, clean electric, ambient synth, brushes
3. (panned C) accoustic guitar, reed organ, bass
4. (C) distorted drum set
5. Stereo piano L
6. Stereo piano R
7. Stereo vocals L
8. Stereo vocals R
The piano and vocals carry most of this song, so they get the most attention in the mix. Notice that I'm using two tracks for each, because they are stereo recordings. The tracks are recorded at the same time, and are generally treated as though they are one track.
