You point the timing light at the flywheel, after removing the big green/white screw in cap on top of the gearbox, next to the block.
Turn engine over till the bottom end is at TDC @ piston 1. There is a punch mark on the flywheel, and a notch on the crank pulley which lines up with a mark on the timing belt cover. Use the flywheel mark if possible, as its more accurate. Then verify this by removing spark plug #1 and shining a torch down the hole, make sure piston one is at the top of its travel. If it isn't and the marks defo line up, some muppet has fitted the flywheel and/or crank pulley on wrong, so you are in for a world of hurt!
You should see this after removing the gearbox timing inspection bung:
The big red arrow is the BTDC mark which you use to set the ignition timing with the engine running, the round punch mark is what you use to set the static timing with the engine off.
Ok, once the bottom end is lined up, the cam has a punch mark on the inside face (nearest the rocker cover). This should line up with the head surface. If not, loosen the tensioner and rotate the cam sprocket till it does!
Finally, remove the dizzy cap, and make sure the rotor arm is pointing to the notch on the dizzy, it can be a bit faint, give it a clean and you'll see it. Sometimes the dizzy has a plastic dust cap fitted, the notch is visible thru a hole in that. If it doesn't, either turn the dizzy till it does, or loosen the belt and turn the intermediate shaft. Its not easy with the lower timing belt cover on, but with a bit of messing about it is possible.
Then refit the dizzy cap, making sure spark plug lead #1 is on the terminal the rotor arm is pointing at, then set the firing order to 1342.
Then, once the engine is started, run it till the oil temp hits 80 degrees, then unplug thevac hose to the dizzy & plug the end, then set the timing with a timing gun pointed thru the hole above, and turn the dizzy till the big arrow on the flywheel lines up with the arrow on the gearbox casing.
