Brian,
Replace the primary drive nut with the SRM nut; their timing disc can be mounted to their nut.
Follow the instructions in their kit regarding finding TDC; you will have to make an indicator (pointer) and mount it solidly to the engine. I screw mine into one of the 1/4" BSW screws for the chain case, and adjust the pointer to suit.
When using the timing light, make sure to check the timing on both pots; the K2F maggie will often have 2 - 3 degrees variance (therefore average the timing between the two). It is a huge advantage to slot the magneto mounting (stud) holes, so that the nuts can be loosened enough that you can twist the housing and adjust the timing whilst running the bike. Minor adjustment (up to 2 degrees) can be achieved by adjusting the points gap, within the range of .012" - .015" (0.001" change = 2 degrees timing change). However, the cam ring can be the reason for the timing variance, because of manufacturing tolerances (the points opening can be different for each cam ramp).
You will need to find a 12V battery to power the timing light. Clip the "pick-up" from the timing light over the HT lead of the cylinder you are checking.
Richard