" Making sure cylinder #1 is at the top "
That has nothing to do with timing. And I've already told you how to put the distributor back on the tractor (line up the tang & slot) And that has nothing to do with timing either.
Get a meter or test light, a 21/64? drill bit (See the note below) & a metal straight edge. Put the distributor face down w/ the condenser on the left & the timing plate lock screw on the bottom. Look at the end of the shaft: it has a narrow side & a wide side. Make sure you can tell the difference. Now, place the drill bit in the bottom mounting hole (this will be your reference point for measuring). Next, place a straight edge on the wide side of the tang on the shaft as shown in fig. FO83 in the picture. Rotate the shaft CCW (as viewed from rotor side OR CW as viewed from back/tang side) until the straight edge is ?" beyond the outside edge of the drill bit you stuck in the distributor mounting hole. At this distance, the distributor points should start to open (get your meter/light out now & check). If not, loosen the timing plate lock screw and turn to advance or retard the timing (move the plate down to advance timing, up to retard). Remember, each one of those little hash marks represents about 4? of timing. Keep adjusting until you get the proper ?" setting. (if the plate won?t move, you might need to remove the big C clip to loosen it a bit) As you?re adjusting, eliminate backlash by turning the shaft backwards (CW as viewed from the front) and bring the shaft forward (CCW as viewed from the front) to measure your setting. This ?" setting will get you static timing at top dead center.
After you set the points & timing, do a continuity check before you put the distributor back on the tractor. Do not skip this step! Before you start, make sure your meter/light works.
With the distributor still off the tractor, follow these steps:
1. Coil off, cap off, points open. One probe on the brass screw & the other on both sides of the open points. On the side closest to the cam, you should have continuity. Not on the other side! If you do, you will also have continuity everywhere because the points are grounded.
2. Coil off, cap off, points open. One probe on the brass screw & the other anywhere on the body of the distributor. You should have no continuity! Now, rotate the tang on the distributor....as the points open & close, you have continuity (closed) and lose it when they open.
3. Put the coil on the distributor, cap off, points open. One probe on the lead on the top of the coil, the other on the cam side of the open points. You should have continuity!
4. Coil on, cap off, points open. One probe on the lead on the top of the coil, the other anywhere on the body of the distributor. You should have no continuity!
At this point, I just put the distributor, coil & cap all back on the tractor as a unit. The reason I do this is because it is real easy to get the cap or coil misaligned trying to put it back together, one piece at a time. The result is something gets broken or you get a ?no spark? problem.
Double-check your firing order & plug wires. It?s 1-2-4-3, counterclockwise. It?s very easy to cross 3 & 4 both at the cap and on the head.
And finally, do not forget to remove the distributor on at least an annual basis (more often, depending on use) to check the point gap and re-lube the cam.
Note : Rather than the drill bit, a jig made by Dan Allen (The Old Hokie) will make this task quicker & more accurate.
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