Not sure what your book says, but I did mine according to the book I have.
#1. take out the plug on #1 and turn engine over(with hand crank) until top dead center on compression stroke. Compression stroke is obvious when you put your thumb over the spark plug hole you will feel the pressure push your thumb off. I'm sure you already knew that.
#2. Look under the bell housing. There is a small round hole up at the front, again on the bottom. Find the mark on the flywheel that reads "D-c 1/4". When that mark is in the center of the window, you can continue to step #3. Keep in mind that the mark is small and difficult to read.
#3. Turn mag by hand until the rotor is pointing at #1 cylinder. Click it over and then turn it to align with the key slot properly, bolt it up. good to go.
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