sorry if this is lame wrote:
Lately, most of my runs are on the treadmill. I typically keep the majority of the running at 5% Gradient, although I will adjust from time-to-time (for warmups/cooldown, etc.).
Why 5%? The general consensus is that 1-1.5% incline is pretty close to running outdoors. I could see why if you wanted to be an ultra trail runner where there's lots of climbing, but if you're training for a flat course then I don't see the point. You'll get better at running steep uphills and your leg strength will increase for sure, but that doesn't necessarily translate to running faster on flat ground. I think it'd be better to run at speeds that are closer to what you'd actually run in races, unless you're specifically doing a hill workout.
As far as calibrating the watch, I think the other metrics given by your watch (plus knowing your body) are already sufficient for measuring how you're reacting to the stresses of training. I know dedicated runners really want to look at everything to see how they can improve their training, but this doesn't seem like it will help you much. The Vo2max prediction from watches doesn't mean much -- get a lab to test it if you really care. Even then, it's not a great predictor of performance. Velocity at Vo2max is more relevant to runners, and you can just test that with a 6.5-7 min time trial (or 3km if you're on the faster end of the spectrum and you want an approximation).