Hi Jerry;
Thinking about the 4-stroke engine, are you sure the shop manual said the #1 exhaust valve should open and close before the timing mark comes up??? In my mind, that should read the INTAKE valve. As the intake valve closes, the piston is coming up on the compression stroke and at TDC (for static timing) you would want your dizzy to fire. Sounds to me like you're 180 degrees off.