I worked on a bunch of these bikes back when they were new and I was working at Mathews Honda in D.M. Iowa. Bear in mind that was 30 years ago. IF I recall correctly. . . . .
First, the points only open and close. Other than that they don't move. The points are adjusted for gap by being moved L and R then locking down in place with a screw.
Assuming you have a good set of points, set the point gaps to 15 thousandths. The timing is set by rotating the base plate the points are mounted on. Behind the plate is a centrifical advance. Get an inductive pickup timing light and hook it up to the battery. Hook the pick up on the left
sparkplug wire.
Start the motor and point the light at the top of the gearbox flywheel. Yes, with the cover removed some oil will spit out. This is normal. Rev the bike and you will see the timing marks. You will also see a static timing mark on the casing. Rotate the points base plate to line up the marks. When you let off the gas the flywheel marks should move counter clockwise. If they don't, then remove the points cover and free up the
centrifical advance mechanism. You just timed the engine.
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