Have a look at Kevin cashin's post "working the three steel types" found in the heat treat stickies. It gives a great explanation of what's going on during heat treat. Hypereuticoid steels are the last covered and the importance of soak time with these steels is explained.
Normalizing is done to relieve stresses in the steel, prevents warps and cracks from happening during the quench and reduces the grain structure in the steel.
This is what I do, others may do it differently and get better results but this works for me. I don't get cracking, warping is minimal and grain is nice and fine. Good temprature control is your friend here, grain grows quickly once you go above critical.
First I heat up just to critical and remove the piece and let it cool back down to black and then some.
Next heat to just BELOW critical and take it out and cool
Next heat to below the previous heat and let cool to room temp.
I judge temprature by color in low light, and while it isn't the most ideal situation, it works for me or at least I'm satisfied with the results.
After you quench, but before you start tempering is when you want to test the blade with a file to see if it hardened. The steel will have a decarborized layer on it after the quench which the file will kind of bite but try it a few times in the same spot and you should be able to feel the difference.
What are you using to temper your knives? If your using a kitchen oven or toaster oven, you should put an oven thermometer in with the knife to see what temprature your actually getting. My oven is all over the place when it starts. The other day I set it to 400deg and when it said it was heated up I checked and it was only at 300. I had to try a few times to get it where I wanted. Keep checking to make sure the temp doesn't soar on past where you want or you will have ruined your heat treat and have to start over.
Also, any oil or other contaminants on the steel will affect the colour you will see.
Best way to know if you got to where you wanted to be is by doing a hardness test either with a machine (better) or hardness files. I don't have any of that stuff but I file my bevels so when I thin them down after HT I can tell if they hardened up the way I wanted them.
Again, hope this helps!!
-Colin