You have #1 and #2 right. But on degreeing the cams, I would use the intake centerline method, rather than relying on determining the timing by noting when the valve starts to open. Comp Cams has directions on that on their web site for reference, and it will be the same idea for the SOHC, but I will try to summarize it here:
- Start with the right cam, cylinder #1. Make sure that the only rocker arm you have that is active is intake rocker on #1, and you have the adjuster backed all the way off. When you turn the engine go slowly and carefully. The idea here is to avoid bending a valve against a piston by forcing the engine to turn over, in case the cams are not degreed where you think they are. Make sure you have the chain pretty tight; a loose chain will affect your readings.
- Put your dial indicator on the #1 intake valve spring retainer, next to the rocker arm. Now, turn the engine over in the normal rotation direction (clockwise when looking from the front) and watch the dial indicator. As the valve starts to open it will turn in one direction, peak, and then start turning in the opposite direction as the valve begins to close. What you need to do here is to adjust the dial indicator's dial so that at peak valve lift, it reads zero, so turn the dial indicator bezel to zero when you get to peak lift. If you've gone past peak lift, just turn the engine backwards a little, then approach the peak valve lift again.
- Now that you have the engine at peak valve lift and the dial indicator reads zero, turn the engine backwards so that you are about 0.150" below peak valve lift. Now, start turning the engine in the normal direction again, slowly, watching the dial indicator. When you are 0.50" before peak valve lift, stop and note the reading on the degree wheel. Let's say it is 282 degrees BTDC.
- Now continue rotating the engine in the normal direction. When the dial indicator shows you have passed peak lift and are down .050" below peak lift, stop and read the degree wheel again. Let's say this time it reads 222 degrees BTDC.
- Now comes the math. Split the difference between these two degree readings and you have 252 degrees. This is the intake centerline BTDC. What you want, though, is what is specified by the cam manufacturer, which is intake centerline AFTER top dead center. So, subtract your intake centerline BTDC from 360. 360-252=108. So, your intake centerline is 108 degrees. (Depending on your degree wheel, you may be reading the timing marks in degrees ATDC from the start. In that case splitting the difference between the two readings will give you the intake centerline reading directly, and you don't have to subtract your reading from 360).
- Finally, note that this is crank degrees, not cam degrees. Each pin position in the cam gear will move the cams 3 crank degrees. So, if you are off, then you can move the pin location on the right cam/gear to advance or retard the cam. If you are WAY off, then you probably have done something wrong assembling the gear to the cam, or installing the chain.
- Once you get the right cam degreed, move over to the left cam and do the same thing with the #6 intake valve.
Plan on spending some time on this operation, because it definitely takes some thinking on the SOHC, and it is easy to screw it up. Just go slowly, double check things as you go, and you'll get it - Jay