I did quite a bit of work with paper negatives a while back using Ilford MG RC. Definitely a good idea to dilute and dilute. Haven't got my notes on me, but was probably around 1+25 or 1+30 PQ and short dev times, 1-2 minutes, though maybe more depending on how it is rated. Think we were 3 ISO. Best to test, perhaps shoot something you can waste before the main ones.
Wouldn't recommend snatching under red light. I did try that and as we were over-exposing and under-developing in general to get a smooth range of tones, had to be quite precise. If it was snatched too soon, (though looked good under safe light), paper negs were very thin.