1. Find a new printer who does his job instead of asking you to impose, or
2. Put page 8 back where it belongs at the end of the document and figure out why you are losing quality with Print Booklet (must be your distiller settings), or
3. Use a script or plugin to impose the file.
Since you appear to have crossovers, for a script I'd recommend Dave Saunders' second booklet script: Dave's CS3 Booklet Script, or if you need to do a lot of imposing, the inexpensive IDImposer plugin: Overview | IDImposer