This I wrote many years ago and is still valid. For a start you can use a feeler gauge. Points gap should be set between 0,3 and 0,4 mm (0.012-0.016). Or you can use a dwellmeter that shows the degrees the crank rotates while the breaker points remain closed. So, the higher the dwellmeter reading, the smaller the point gap and the shorter the dwell, the wider the point gap. I prefer the meter over the feeler gauge. Some DMMs have this function and nowadays they're affordable. A meter is easier, more precise and you're able to check for irregularities at different rpms. On 500/550s breakerpoint dwell should be in between 98
o-92
o or 49
o-46
o or 24,5
o-23
o depending on what cylinder scale your meter reads. If you have a dwellmeter that reads duty cycle, it's even easier as they registrate in % no matter how many cylinders. Then 98
o-92
o or 49
o-46
o or 24,5
o-23
o translates in simply 54,4-51,1% and there's no need to select a cylinder scale anymore. Like Pewe I prefer to start with the widest gap (= lowest dwell) as contactbreakers tend to decrease their gap (= increasing the dwell) over time.
Setting the dwell should precede the timing. Once you have set the timing correctly, you can - later on - correct the timing, if necessary, by simply bringing the contactbreakers to their correct dwell again and you don't have to bother to loosen the plates anymore. Less screws to work on.
BTW, that's how all mechanics at Honda dealers it.
For those of you that prefer, like me, the dynamic procedure and use a dwellmeter, here is a tip.
Years ago I have attached two ‘blind’ extra wires on my coils (12V-) both with a female connector at their end. Once you have set your timing correctly, these wires allow quick diagnoses later on. Write down the dwell for future reference. Almost all changes in timing originate at the contactbreakers. When the dwell changes, so does the timing. When you suspect the timing is off, simply connect the dwellmeter to the extra lead 1&4 or 2&3 and you can verify if dwellangle is still the same or has changed. It’s important that those female connectors are well shielded to avoid groundcontact.
I have had these wires attached for years now. What I like is that I can check really quick without even to remove the ignitioncover. O, and another thing: I'm always impressed how many miles I can ride without having to readjust the ignition. Just keep that little felt lubed.