I have never attempted tapping a piston to swell it, but if was going to try it, I certainly WOULD NOT use a nail set. The hammer tap focused on that tiny point will punch through the top of the piston in short order. Good luck trying to get compression after that.
I would think a brass punch, about a 1/4" diameter at the business end, would distribute the tap and maybe swell the top of the piston. I thought this method only worked with a dome top piston, though. My Redhead .35 has a baffle, and I'm pretty sure it's flat on top. Doing this to a flat top piston should draw the sides in more???
As far as heating goes, I've heard 500*F for thirty minutes, but again, I've never tried it.
Maybe there are some McCoy gurus that can provide more insight.