I misstated this before, sorry. The rotor should be pointing at #1 when the bb is aligned. To be more precise, the points should be just opening - with rotor toward #1 - with the bb aligned. Remember the rotor rotates CW when you set the 'just opening' location. This should get you pretty close - enough for the motor to run so you can set the final timing with a timing light.
Also, I understand that the spark happens at the end of the compression stroke (with a bit of compression to go). Supposedly, the explosion takes a little of time to oommmph - thus the extra travel before the power stroke.
