You're doing it all right. Assuming the scat pulley is correct, crank the engine until you've got TDC *and* both no 1 valves are closed. You're on the compression stroke then, rather than exhaust. Then reposition your dissy drive shaft so the drive dog slot is crossways (it's actually slightly off) across the crankcase, as per haynes pic, thin section towards the front (from memory). You may be able to carefully lift it up and reposition with a dowel as above, without disturbing the washers. It actually doesn't matter what position the shaft's in as far as the dissy's concerned, as long as the rotor arm points to the right plug at the right time, but it would be a nightmare for future timing and the dissy body would probably clout something.
