Thanks Andy,
Currently my process for setting timing is as follows:
1. rotate engine clockwise until top dead centre can be measured with the depth gauge on the bottom of vernier calipers
2. zero depth gauge then rotate engine back anti-clockwise until piston has gone down 5/32 (4.5mm)
3. align flywheel mark with mark on housing and tighten whilst checking it hasn’t moved on shaft
I’ve got quite well practiced at that routine now! And I have tried adjusting the timing by tightening up the flywheel with the timing mark in different positions close to the mark on the housing. Is it as critical as 1 or 2mm out?
I’ve noticed that when originally reassembling the flywheel housing with one of the timing marks on, there is some margin for movement as it slips around the backplate which the points and coil are attached to until tightened down. But I have aligned it so as the joint to the top part of the cowl is horizontal and looks to be coplanar with the intake pipe on the engine.
Seems like I’m so close but starting to lose patience with this old engine unfortunately!
Cheers