By checking this is how i checked. Using a dial indicator I rotate the engine counter clockwise until its 2.9 BTDC then using a buzz box I'm eyeballing the points to just barley open, tighten down the points rotate the engine counter clock wise back to 2.9 and nothing. like I said i'm using a used set of points that seem to be worn. I have bought new ones but haven't received them yet. Is there a gap I should be setting or does that matter. Still not sure if I have the right stator but the fly wheel does seem to fit. I tried a flywheel off my DT-250 1968 and it would not fit on the rotor.

Get your dial indicator to TDC then turn your flywheel Clockwise to 2.9 that’s BTDC

I may have stated that wrong but I do know where 2.9 BTDC  is. What I meant to say was after i set the points I rotate the engine counter clock wise all the way back to 2.9  my points are worn and I bought new ones. also not sure I have a matching flywheel and Stator. I'm trying to find a pic of a 1970 stator not having to much luck with that I was told its a 1 year only stator. Thank you

I have a photo that shows the difference, but no way to post it to the forum.

Maybe i'm having a bad day reading--but you say you turn it "Counter Clockwise" to 2.9, set points, then turn it "Clockwise to 2.9". Gotta be something in 'that' or i'm misunderstanding your meaning.
Also do you have the head of for your dial gauge as an angled plug hole will give a false reading--or 'could' bend your gauge probe if carbon on the piston.

Here are 2 pictures of the advance RT1 stator. Bottom picture is of a non advance stator that i have. For sale if needed. Look at the number on the backing plate and compare to these. they are different.

Here is an image of the differences between both stator plates courtesy member DEET. 

Eyeballing points opening is very " hit or miss " .
When checking exactly when the points open , you need to go back past the opening setting point .
3.5 mm BTDC , for example . Connect your test equipment , and rotate flywheel slowly anti clockwise ,
until your test equipment indicates points opening . Then compare what height BTDC the piston is ,
compared to stock spec . Adjust point gap as required to reach stock opening point .
It will take a number of resets to get it right .

Thanks to everyone for all the help, I changed flywheels, new points and after several tries I was able to get it to 2.8 that's close as I can get it.

2.8 is good--go ride!!