Boswell,
No question is trivial here you are doing fine.
First?: Knowing is very critical as there are two different settings between solids and hyd lifters. Press the PO for an answer or at least find out who rebuilt the engine for him or her as the case may be.
Second?: Sealant only needs to be on the valve cover side of the gasget, not the part of the gasget that touches the head. Permatex non hardening is a good choice in my book.
Third?: 10w40 is ok but a little thick for a new engine break in with low miles on the clock. Everyone will tell you a different weight if asked. After break in some use a synthetic 10w30 lub.
Forth?: Once you know its firing on #1plug (the pointer is on where the #1 wirre would be in the cap) Both valves should be all the way up and there is a little play between the end of the valve and the rocker arm. There might be none if the valves are tight or one may be tight. Take the rachet with the correct socket and loosen slightly (1)turn the nut on the end of each of the rocker arms on #1 cyl ok. Set down the rachet take your wrench and screwdriver and the .013 flat feeler guage and put between the end of the exhaust valve and rocker. If you can't get it in loosen slightly the screw on the rocker arm til you can. Slide the feeler guage back and forth and by turning the screw some in and out until there is (some)tight drag. Take out the feeler guage, hold the screwdriver steady so it won't change the setting and tighten down the hold down nut.You are done for the exh valve. Do the same for the intake valve using .006 and you are done for that #1Cyl. Use the same (drag) feeling for the rest of the valves as I have listed in the previous post. Very important to follow the diagram you have drawn as things get confusing about 1/2 way thru.
Fifth?: You replaced the points (New) setting is .021 used points .019. Wipe your feeler guage to get all the grease and finger oil off. Points do not like this stuff. Put enging in neutral, block one wheel so it won't roll. Turn engine over (clockwise) or (counter clockwise) it doesn't matter here til the rubbing block on the points is on one of the high spots on the center shaft of the distributor. You have 6 cyls so you will have 6 high points on this center shaft-correct. 8 cyls have 8 and 4 cly have 4. Once it is on one of the high points, you will need a screwdriver and the flat feeler guage .021. Loosen one of the screws holding down the points slightly. The other screw is the adjuster, turn it back and forth a little to view how it changes the gap between the points. Carefully put the feeler guage between the opening of the points and adjust this little screw til there is a slight drag when you move the feeler guage. Be careful during this process to not move the rubbing block off the high point of the center shaft where it needs to rest at all times during this process. The only other screw on the breaker plate is the one that holds down the condenser. Make sure that one is tight but don't over do it. Always change both the points and condenser at the same time. Once you have the points set to your satisfaction tighten down the screw that holds the points, don't over do it. These engines will run if you are a little off. Time and experience will give you a good touch. After you have set points 1/2 dozen times you will be an expert. All in all maybe two minutes to set points. First time take your time. Don't forget to put in the rotor before putting on the cap. I've done that in a hurry. I think that's it for now.
Tim