I know it sounds dumb to ask, but I've never adjusted timing before. I know the basics of how to do it (jumper connector, idle car, hook up timing light to cyl 1 plug wire, point at crank pully, compare line on pully to line on timing belt cover). I have the Honda service manual but it kind of vague. Really what I need to know is how do you read the marks? Are they supposed to line up exactly, or is that 0 degrees? The manual says to set to ~15 degrees BTDC.
Thanks.

 

Yep, sounds like you've gt the basics. When your adjusting your ignition timing, look at the crank pulley. You'll have 3 marks together and 1 single mark to the right of those 3. With the engine running, warmed up, your jumper jumped,timing light hooked up, and it's holding a good 7-800 rpm idle, losen your distributor so you will be able to move it slowly by hand. Leave the bolts in, just losten them a little. Then aim your timing gun down at the crank pulley marks and see which mark is lining up with the marker on your timing belt cover.
Let's say these are your marks III I. Starting from left to right it goes 18* 16* 14* and the single is top dead center. You'll want it pretty close to the 14* marker if the manual say's 15* BTDC. If it's not, you can either rotate the distributor toward the front of the car to retard it, or rotate it toward the firewall to advance it. Keep checking it with the light until you've got it where it should be. then tighten your bolts and re-check again because sometimes after tightening the bolts it will be off again.
if it's where it should be, shut off the car, remove the light, remove the jumper and your good to go.

 

BTW, how do you spell "loosten"? Either I'm having one hell of a brain fart or that's just not looking right to me :P

 

Loosen

 

http://www.c-speedracing.com/howto/timing/timing.php

 

Good link RedEx. Oh yeah, thanks Dave Loosen... Now it looks right

 

Thanks everyone, thats what I needed. One other question, is there a certain starting spot to put the distibutor, right in the middle of the range maybe? I replaced it (obd1 conversion) so now its just wherever I stuck it on. Is there a change a damage if I start out with the timing too far off?

 

Yes there will be a change, probably no damage, but you'll notice as you advance the distributor, the idle will gradually become higher. As you retard it, the idle wil drop lower and possibly start idling rough. If you were to drive it around with the ignition timing not where it should be you might notice it sputtering or lacking piower.
Those are all symptoms of your timing being off. A good starting point would be the middle yes, but can you see the marks where the distributor was sitting origionally? That could be an option as well. Once you've got a starting point and it will idle, just check it with the light and adjust as needed