I found the bb on the fly wheel and timed it accordingly with that...
It sounds to me like you could still be 1 full revolution(of the flywheel) out - the bb will be there at the exhaust/intake stroke and the compression/fire stroke. Try putting the plug wires directly across from where they are now - it sounds like the distributor is 180 degrees out of time.
A 6 volt starter will be fine with a 12 v system.