I'm not sure where you got the above.
Are you stating the timing light will flash before the points open?
I have used the static timing point at "F", "LF" since the early 60's and when I finally could afford a timing light I found setting the points static then checking with the timing light "I was spot on". I did this for a while and once I was satisfied "I could do without the timing light check" I offered what you see in the FAQ section of this forum. Not everyone can afford a timing light and today the vehicles need a computer wizard to adjust anything, "if the problem can be adjusted" not just replaced. A couple of alligator clips, 2 pieces of wire and 1 light bulb ($1.50 +-) and the engine can be tuned.
A couple of questions for stepper, What point gap do you have, have you had the engine apart which would cause you to reinstall the cam chain? .................lm
Nick wrote:Before offering some suggestions for you to try, if you're static timing the bike (engine not running) be sure to use the timing line closest to the TDC line. In other words, the points should be opening almost at TDC (top dead center = piston at very top of stroke). The line furthest away from the TDC line is for timing with a strobe light.
Couple things you can do if the points are still opening too early even with the points plate fully rotated in the clockwise direction
1. Remove points backing plate and file/grind away some material to allow the plate to rotate further in the clockwise direction.
2. Reduce the points gap slightly. This will also cause the points to open later. (dwell won't be so wonderful, but it'll get you down the road)
3. You could also very slightly bend upwards the fixed points contact. Then re-dress the points contact surfaces to make them parallel, sort of.... (ditto the above)
Remember to put a very small amount of grease on the points cam to reduce wear at the points rubbing block.
The reason you're running out of adjustment is because the rubbing block on your points is worn down.
I did the above to my Dream and it runs fine. Rode it to work yesterday.
Doesn't hurt to have a store of guerilla repair tricks, they can get you home when others remain stranded!