Timing light question

I have just installed a Dyna-S, coils, wires (thanks to Jeff and Z1), and did the coil relay mod at the same time. I have set the timing statically (ignition on, turn crank, set 1-4 on the fire mark, then 2-3 by adjusting the RH module on the Dyna the same way).

The bike runs well with amazing starts . Now I would like to fine tune with a timing light. How do I know when the optimum setting has been reached? Currently, the strobe shows the mark just right of the reference mark on the housing for both 1-4 and 2-3. There is a slight wobble (can't think of the proper term ATM) of the marks, and you can hear that the timing is off slightly.

Haven't had it on the road yet, as I am waiting on brake lines, and don't want the hassle of installing the old ones just to be replaced in a couple of days.

My manual only shows timing adjustment with an Ohmmeter with the points system. Any hints and tips greatly appreciated.

This is from the KZ900 shop manual. The 650 procedure should be the same:
Using a strobe light clipped to plug wire #1, at idle speed, the 1/4 timing mark and the F mark should coincide. By about 2,900 - 3,100 rpm, the timing advancer changes timing enough so that above this speed, the timing mark should be aligned with the most clockwise of each set of three marks on the timing advancer (to the right of the F mark).
Clip the strobe inductor to plug wire #2, and repeat for the 2/3 timing mark.

Hope that makes sense.

Just what I figured, thanks ltdrider.

By about 2,900 - 3,100 rpm, the timing advancer changes timing enough so that above this speed, the timing mark should be aligned with the most clockwise of each set of three marks on the timing advancer (to the right of the F mark).

I assume this would be the double marks you see on the advancer. Thanks again for the verification.

I was wondering the same thing, so I called dyna and they said to set the idle to 4,000 rpm and make sure that the full advance mark is seen with the timing light. then re set idle and check that the timing marks as you did the first time. They should still be set correctly. I hope this helps you out. Wayne