Set the timing first. To set timing, turn crank by hand, to your desired timing. If you run 36 degrees, align timing pointer with the 36 degree mark, then center the pickup on the closest magnet, tighten the bolts and you're done. Check the timing with a timing light to make sure it's correct then phase distributor.
The best way is to drill a hole in the top of a spare cap inline with the #1 post. Start the engine and shine your timing light at the hole. You'll be able to see the rotor tip when the light flashes. It helps to put a white mark on the rotor tip. Turn the dist to align the tip with the #1 post and tighten it down. You're done. Be sure to put your non-drilled cap back on and go racing!
Later,
Johnny