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CAREFULLY rotate engine by hand in direction of rotation with ignition shut off while CAREFULLY holding finger OVER #1 spark plug hole. You will feel pressure when the cylinder begins to come up on compression. As the pressure ceases, and suction begins, you have passed TDC. Back up the engine and try again, stopping at the point where prssure ends. Confirm the EXACT spot with the engine timing mark, if available. Turn the distributor housing OPPOSITE the direction the rotor rotates until the points JUST BEGIN TO OPEN. Tighten the distributor hold-down. Identify the terminal on the cap that corresponds to the position of the rotor. This is #1. Position the spark plug wires IN FIRING ORDER starting from the one determined to be #1. The above is a generic procedure for gasoline engines, and, if memory serves, this is a 2 cylinder engine, so after determining #1 TDC, you would need to position the distributor housing so as the points JUST BEGIN TO MOVE, the rotor lines up with the cap terminal that is the first of the two close togther terminals that the rotor passes as it rotates. The #2 wire would go to the other terminal that the rotor will be in line with 1/2 crankshaft revolution later. This will give you a base timing of 0 degrees. You may need to advance it a few degrees to manufacturer's specs. I assume this engine has an electric starter? If it is hand cranked there is a risk of kick-back if the timing is set earlier than TDC. It would be easier if the oil pump gear was aligned as the service manual shows, but there is no reason the engine will not run if the above procedure is followed.
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