had similar prob gettin my head around crank sprocket mark 'slop' til someone on here explianed it to me! but short is answer yea.. use flywheel to set tdc as it has solid mount to crank (rememberin diamond mark is 6deg btdc, notch is tdc) then for ign timing its like you say.. rotor arm should point to mark on body. if they dont line up slacken dizzy mounting bolt and and line up them up by eye. then set ign accurately with timing gun/6deg btdc mark on flywheel as per rubjonny faq. worth mentioning that repositioning dizzy body can sometimes throw position of no1 plug on dizzy cap away from normal 1pm position. this suggests that the intermediate shft sprocket is misaligned (probably due to bodged timing belt change). but as long as youve got clearance to rotate dizzy body to set ign timing it doesnt matter! otherwise you need to remove/reposition intermediate shaft sprocket (and therefore remove lower cam cover + crank pulley which is pain in the ass) as this is what joins crank to dizzy and finally with crank at tdc its worth checking cam timing.. notch on inside of cam sprocket should line up with top face of cylinder head (or top edge of metal bracket that sits at side of cover.. saves taking rocker cover off to sus out exactly where top face of head is). if cam sprocket doesnt line up then this points to crank sprocket being worn as its this that connects crank to cam and can potentially throw cam timing out by +/-1/2 a tooth. hope this helps/makes sense!
