Is your avatar a pic of your bike? I think several of us were looking at it on auction sometime ago and being quite impressed with the paint job.
At Idle, there should be an "S" with a line just above the top of it (sometimes very hard to see). Idle timing is considered OK if you get that line or the top of the "S" aligned with the line/notch mark on the left side of the inspection hold (it is in the middle, top to bottom) and it stays steady. If a double image appears, you've either got worn points/advance mechanism or worn timing chain/sprockets.
On the bikes up to 1978, I believe, the Full Advance mark is an "F" and you should have that centered with the line in the timing inspection hole at around 3500 RPM. On the 79->later bikes, this is a letter "Z", not "F". Again, RPMs at a steady 3500 RPM should align the "Z" with the timing line mark in the middle of the inspection hole.
The Top Dead Center mark is an "OT", I believe.
Is it possible that you've got a flywheel that is not standard?