Since you have the .mif set to 8 bits and the output set to 1bit, shouldn't the output go:
0,0,0,0,0,0,0,1,0,0,0,0,0,0,0,1,0,0,0,0,0,0,0,1...
Remember, you can specify the 'layout' of the .mif file to match the A input port, or the B output port.
But, since you set the .mif to 8 bit, I assume you have the layout on port A.
If you want 0,1,0,1,0,1,0,1,0,0,0,0,0,0,0,0..., you will need to make the first address 0 byte = 8'h55, (or 8'hAA, I don't remember the output bit addressing order.), and all other bytes = 0.