I usually set the initial timing by setting the crank at 5* before TDC(top dead center), and install the distributor so that rotor is just before spark plug one's terminal with the adjustment range of the the distributor housing in the middle. From there it is usually just some fine tuning of the distributor. It may take a couple of tries to set the the dist right as the shaft will want to rotate as it meshes with the gears. If you find yourself running out of room for adjustment, pull the distributor and rotate the shaft a tooth or two at a time in whichever direction is needed.
Download the FSM from here or buy one off the pay site if you don't have one already, it will all but hold your hand through the tear down/rebuild process, don't bother with a Chiltons or Haynes manual, they are just about useless.
