Maybe I'm not doing something right in terms of process or I'm not sure how to translate what the digital dwell meter was telling me. I set the timing with a static timing light to just light up when the engine set to TDC (ball aligned with needle and points just open - i.e. light comes on) then turned the engine until the lobe had the points at maximum open. I then set the points to be .016 with a feeler gage assuming I should be good for dwell (points gap is the same as dwell, right?).
When it started and was idling, I hooked up the dwell meter to the #1 wire, which read 59.9 for the dwell angle, and not knowing any better, figured that I was spot on 360/6 = 60. There must be something more to it than that because what you said about points being open for all 60 degrees makes sense - that it could not run.
How did you calculate 40 degrees from the 60 degree reading? I honestly want to know and am not questioning how you got there, just want to know how to make sure I get it right.