Mike Patterson: I can tell you how to use the meter, I'll leave it to Matt to explain his timing procedure.
I like the meter in the second picture, looks like a Simpson, I will refer to it in my instructions.
Steps to using an analog Volt-Ohm Meter (VOM) to check for continuity (or resistance):
1. Insert black test lead in the Common Terminal (as shown in photo)
2. Insert red test lead in the Volt/Ohm/<10 Amp position (as shown in photo)
3. Set the meter at the highest Ohm range, which for your meter is marked "Rx10K" for 10,000 Ohms (the smaller meter in the first picture has a "2000K" range). The highest setting will introduce the least current into the circuit, and you won't be measuring K-Ohms anyway, you will be reading for continuity, or zero ohms.
4. Firmly touch the two test leads together and observe the needle: it should jump across the entire range close to zero, or slightly past zero. If the needle fails to move, either you haven't inserted the test leads correctly, or you don't have the dial set for an Ohm range (it is set for Volts or Amps), or your battery is dead/missing. (You need a battery in the meter to test for resistance or continuity; you don't need the battery to test for voltage or current.)
5. If the needle moves, but isn't sitting directly over zero while you are staring straight at it, then adjust the "Ohm Adjust" thumb wheel to get the needle as close to zero as you can. Try to position the meter and your head where it will be when you are testing the unit, you want to avoid "parallelax" where you're viewing the meter from an angle, although for the task at hand, it doesn't really matter, you just want to see the needle move.
6. When you're satisfied with the needle's position at zero, and you feel you have it set so you can see it well while the unit is under test, separate the leads and apply them as desired to the unit under test.
Note: For setting the timing, you want to measure across the points. The points are in series with the negative side of the coil and the engine block, or ground ("earth" if you're in Britain). So when the points are closed, the meter should read at, or VERY NEAR, zero --the only resistance should be the very small resistance in the wire, and any resistance across or through the points themselves. With the meter set at 10 K-Ohms, you shouldn't see any difference, the meter should read the same as when the leads are shorted together, you should be reading "continuity."
Conversely, when the points are open, there should no current to ground, the circuit through the points is open, and the meter should not show any reading at all --the needle should be pointing to infinity.
Again, I'm not sure if Matt's procedure calls for you to check to see when the points open, or when they close; but the meter should tell you what's going on.
Good Luck, hope this helps.
Edit 1: I notice now that the second meter is a Radio Shack knock-off, no matter, it is still a better tool (in my opinion) for checking the timing.
Edit 2: I would love to come help you with the beer, I'm out myself.