I picked this 72 DT2 up a few weeks ago. It’s a 2000 mile basement find that hadn’t run in 20 years. I changed the fluids, some hoses, and flushed and bled the injection system. 
It runs good. The issue I have is that it kicks back every kick with the compression release off. Of course it doesn’t kick back on the stroke that it starts on. I’m thinking the timing is a little advanced. So I’m going to change the points and time it.

My question: is the only timing adjustment correctly adjusting the point gap?
 

The points are adjusted to just start to open when the piston is the correct distance BTDC.  Done.
.

 

250's didn't have a comp release from new.
Has someone added one into the spare plug hole.
Not necessary for starting on a 250.
If it's a cable operated one in the spare plug hole its only good for stopping the motor--in my opinion that is.
When i read that i was initialy thinking a comp release like a 360 in the front of the cylinder that softens it for kicking.
If it's kicking back bad i'd be looking at the flywheel crank key or points way too wide.
But if it's because you're kicking it wrong then try getting it against compression then kick it from the top--lever right up.
If you roll it past compression accidentaly before starting the kick stroke then find compression again & bring the lever to the top then kick right through.
Pretty easy to move it past compression accidentaly while getting ready for the big starting kick as they don't have a huge amount of comp.

Here's a thread how I timed my CT-1, with a video using a timing light. Also shows mistakes I made, which may help you avoid them 

yamaha-enduros.com/index.php/forums/gene...arks-on-ct-1?start=0

I also had a compression release in the second spark plug hole at one time, but just for braking on dirt downhills without locking the rear tire.

I put a fine scribe mark on the points and stator to mark my starting position. Then moved the points a RCH towards shrinking the gap. That seems to have lessened the kick back and now it starts better too. I’ll have to see if it runs better or worse. 

I wasn't sure, so I googled it. 
One RCH is equivalent to .004 inches.

That was a common unit of measurement in the 1970s Air Force. 

I did wonder haha but was afraid to ask about the RCH.
What i'd do--& don't necessarily follow me" is just set them at 14thou & it'll be pretty close.
Be good if they had a center plug head for easy btdc measuring.
I have a theory i just thought of 'after a wine' & that is 'if' the points heal wears, you might need the points set wider or nearer the 15 thou than with a new set of genuine points because the longer the fiber heal the further it reaches back so the cam hits it earlier therefor needs a closer gap to get 3.2mm btdc timing.
A shorter worn heal needs more gap to get it lifting sooner.
Which is why they say 12-15 thou allowing for wear.
Not sure if i believe that b--shite of mine or not now i've written it.
3.2mm b tdc is what you're aiming for but no more.
My DT1 points i've not looked at for maybe 30 years as still fires up easy but will kick back if i baby it & don't kick it like i mean it.
So my points are likely a bit wide.
It's a motor that never complains albeit with a short skirt MX piston port piston & a 32mm carb off a 360.
I did borrow the mag cover off it recently for my 360 & found my weighted flywheel i thought i'd lost lol a lifetime ago.

I shoot for .013"
I like them to be a little less timing. Also live dangerously using a number like that... lol