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I will see how badly I can explain this
With the flywheel off, remove the sparkplug as well (makes turning the crank easier).
Rotate the crank by hand (use a wrench but be careful not to chew up the taper where the flywheel goes) and observe the crank cam that causes the points to open/close. Find the spot where that cam pushes the points together (their closest point) and then use a feeler to measure that gap.
You are looking for a gap of .020". If it's "wrong" adjust the stationary part of the points (the part that's fastened, by fiddling with the fastener) until the point contacts "just" grab hold of your feeler.
That's about it....