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Below the flywheel you will find the magneto plate.-----It rotates as you increase throttle.-----------There are 2 vertical lines on it.-------------Point the timing light at those marks and you will see the timing notch on the flywheel.----------It will always fire between the 2 marks.----------Points are to be adjusted to a 0.020" gap.
Sam are you 100% sure that the rod bearings on the crankshaft are bronze on a QD-16 model ?--------Or even the QD-10 model for that matter.------------ Wristpin for sure they were bronze.
(Carburetor Adjustments - Two Adjustable N/Vs)
(J. Reeves)
Initial settings are: Bottom high speed = seat gently, then open 1 turn out. Top slow speed = seat gently, then open 1-1/2 turns.
Setting the high and low needle valves properly:
NOTE: For engines that DO NOT have a shift selection, obviously there is no NEUTRAL position. Simply lower the rpms to the lowest setting to obtain the low speed needle valve adjustment.
(High Speed) Start engine (it will run pretty rough), shift into forward gear, take up to full throttle. In segments of 1/8 turn, waiting for the engine to respond between turns, start turning in the bottom high speed needle valve. You'll reach a point whereas the engine will either start to die out or spit back (sounds like a mild backfire). At that point, back out the needle valve 1/4 turn. Within that 1/4 turn, you'll find the smoothest setting.
(Low Speed) Slow the engine down to where it just stays running. Shift into neutral. Again in segments of 1/8 turns, start to turn the top needle valve in. Wait a few seconds for the engine to respond. As you turn the valve in, the rpms will increase. Lower the rpms again to where the engine will just stay running. Eventually you'll hit the point where the engine wants to die out or it will spit back. Again, at that point, back out the valve 1/4 turn. Within that 1/4 turn, you'll find the smoothest slow speed setting.
When you have finished the above adjustments, you will have no reason to move them again unless the carburetor fouls/gums up from sitting, in which case you would be required to remove, clean, and rebuild the carburetor anyway.
The 24/1 mixture is unfortunately needed on that model and that mixture of 1qt oil to 6gal gas will smoke somewhat, especially in a test tank, barrel, trash can, whatever, due to the engine being unable to clear itself out without emptying the test tank of water. When underway, it shouldn't be so bad.

Well it's smoking so bad I don't feel like getting gassed by the man. I mean smoking not just a puff or 2 not trying to be in the water with motor problems.