Hi Everyone, 
I've read many posts on the forum regarding the procedure and I'm still struggling
I'm trying to set the timing , the manual is confusing , it says to rotate the engine until the points are fully open and check the gap,  Does the points cam on the rotor have to be at a certain place to do this check of the points gap? Also the points are new (oem yamaha) do they have to be at a certain location on the pivot ? Maybe the slot on the points centered with the screwdriver slot on the stator plate? and then rotate the rotor until the points open and then check the gap? I made a top dead center tool out of an old spark plug and a test light with a 6v lightbulb,  (i tried it out ,the light it gets dim and bright when i rotate the rotor) I set the gap looking through the slot to 0.35 mm, then rotated the rotor to get btdc location, then hooked up test light and it seems to get bright when I rotate the rotor to btdc location , is this backwards, as the light should get dim ? I checked for spark at the spark plug and I am getting spark, I just wasn't to be sure I'm doing this right that's why I'm here , am I missing something or doing something backwards?
as always any help greatly appreciated 
john

I forgot to mention the stator plate is in its original location centered in the slots on original marks from the washers and the screws

Just 'me' but i'd keep it simple at this stage & just set the back plate on its original factory marks left by the screws.
Then set the piston at 3.2mm btdc with your gauge.
Then set them to be touching each other & ready to part, [& the damn things move as the screw is tightened so treble check by rocking it over that point.
Alternatively there must be a tab as part of the end of one coil to use & line up with a notch in the flywheel window.
Providing the back plate is on original screw marks the tab should be pretty close for timing just to set it the easy way if no dial gauge to use.
Points touching [just] when tab & notch line up.
See what other say, but just trying to un-complicate it for now.

Thanks RT325, the back plate is in original spot I remember reading making sure of that , you mentioned set btdc then get the point just ready to part , that's one thing I haven't tried , I thank you for that info I'll try it in the morning , I'm starting to see light at end of tunnel

Hope its a green light & not a red light haha. Cheers.

The tab on the lighting coil is in place but it got removed when I repaired the broken wire on the winding

I put it back on the coil to where i thought it was based on images i took with my phone

Me too thanks again

Turn your flywheel counter clockwise until you get TDC be sure your test light is hooked up then rotate clockwise until you get to 3.2 mm your light should change brightness if it does at 3.2 then your timing is correct if not change your points so it does at 3.2mm

Thanks Ht1kid , I'll try that , so that means the points will be open and the light should get brighter ?