Here is the first finished padded footlet. I stopped padding after the heel turn and just finished it like a regular sock. It turned out pretty nicely. I tried knitting the toe just like the pattern said (except for padding) - it's a traditional toe decrease but the decreases do not march along neatly on every other row. Instead, for a while they appear every third row, then every second row, and then on every row. It should create a more rounded toe ... but it really doesn't. Plus the tip of the toe is fairly wide (13 stitches Kitchenered). I probably won't do this on another pair of socks... but I have to make the second sock match the first one, so I'll do it one more time!
Here's the top view of the sock: