38 zts timing questions

I bought a 1938 ZTS from a widow several years ago, It had sat for years and I could not get it to run. I discovered the mag was dead so I replaced it with a rebuilt one. I also put in new plugs and new carb. The most I could get the tractor to do , after radomly trying different positions with the mag , was sputter, pop and backfire a little. I knew the timing must be off but the Lack of time, resources, and other projects forced me to literally push the tractor in the corner of the garage for years more.
Just this week, I got a orginal maintainance manual and followed the instructions:
I watched the valve action, and as the intake on #1 fully closed I turned the engine about 1/2 revolution more, and sure enough, the TDC marks on the flywheel began to line up with the pointer in the clutch compartment. I also stuck a little metal wire in the #1 spark plug hole while cranking to see if the piston was coming up and it was...
The book then states to line the pointer up with the mark 1 1/8" above TDC , and at this mark the Magneto drive coupling should be at 12 o'clock or in-line/parallel to the crank shaft. BUT its not - its close, but its more at "1 o'clock" So, I guess I need to remove the coupling and reposition it? Before I do this I wanted to post here and make sure I was not missing anything or misinterpreting the manual. What bugs me is, the former owner was a Moline pro, supossedly had scores of tractors. Surely he couldn't have made a mistake on the timing, so how would it get itself out of time? This is what makes me think that i'm missing something. As it is now, the tractor does nothing, not even a putter, when its turned over.
Thanks for any help.
 
Make sure your mag is ready to fire on the #1 plug. I just went through the same thing with a GTS. The coupling wasn't at 1200, but itmatched the mag when it was in the #1 position and it worked.
 
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