Hey ED anything you can do to VW you can do here-
Arcing at the points is normal with the points cover off- it is what causes the points to wear out (but your weak coil may have something to do with that as well). Coil resistance should be closer to 5 ohms. It's probably close to failure.
Determining the peak is what the static timing light is for.
Timing is as you described using the "F" or fire mark. Should be that it makes the spark happen just a bit before TDC or the "T" mark on the flywheel. The unlabeled hash mark is to see the dynamic (running) timing.
You can set up the test light as you had with the VW (see diagram).
Hope this helps a little.
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