If you're able to make up a TDC mark using the dial gauge then you're sorted. Put 6 deg advance into the timing light, run the motor up to temp, unplug blue temp sender, and tweak the dizzy 'til your TDC marks line up again under the light.
I wouldn't worry about the bottom pulley being out - the crank is a PY one, but the pulley isn't, so there's no guarantee that they're the same - plus what timing pointer are you using? The CL pulley uses a pointer on the cambelt cover, which is in a different position to the metal PY pointer.