The first step to create the hatch is to create a dashed line type. I set the linetype to .188 dash and .188 space.
When defining the hatch, i set the first set of parameters to Angle: 0, Space: 3/8", Linetype: (above defined dashed linetype), Offset: 1/32". (Make sure your drawing units are set to 1/32 precision).
The next two subsequent sets of parameters are the same except Offset is 3/32" and 5/32" respectively.
The last three parameter sets should then mimic the first three except set the Angle to 90.
The tricky part seemed to be getting the hatch to save. HD1.8.5 seemed to handle it fine. HD1.8.6 had some trouble with it.
The hatch definition gives rows of alternating sets of 3 horizontal and 3 vertical lines with a space between each row. To implement the hatch, i had to hatch the requisite area twice. Once the second hatch is applied, select the hatch and adjust it manually using the hatch origin grip to get the desired herringbone pattern typical for an earth hatch.
While not perfect, this method does allow me to create a reasonable earth hatch that i can then edit the boundaries with relative ease.