I also noticed you have a pretty high production number near the end of 1970 so it's remotely possible it came with an E4 carb?  Hard to tell.  Yamaha literature is not the best all the time. 

Perfect! Thank you

I ordered a 6DP1 needle because the one in the carb looked like 6DP7 and I want to be sure. I have the 220 main jet, so I'm going with the E2 column. Also ordered some filter foam to replace the foam that rotted off of the filter cage.
Uni Filter - BF-1 BF1 12" X 16" X 5/8" 65-PPI Green Fine Foam

Sounds like you have a great plan...  needle clip goes in 4th groove down from the top. 

I'm still waiting for the needle, I can't believe it's taking this long. Not that I'm in a hurry or anything! I finally got a good spark after putting in an aftermarket coil and cleaning up the points. I did get a flywheel puller and got a look at the mechanical advance on the flywheel. It was stuck and slightly rusted. It freed up with some penetrating oil. There was a little rust on the cam that opens the points and that was removed with some 1500 grit paper so now it's nice and smooth with just a little pitting. The advance was disassembled and cleaned up and lubed. The thing I am a little concerned about is the free play between the slot in cam and the lever that advances the timing. There is about .030" gap there. I'm not sure if that's enough to make a difference or not. I guess I'll have to wait and see how it runs like this. I'm also waiting for crank seals so I'll wait to put the points and flywheel back on until I have those.
Anyone know what my options would be if I wanted to change this ignition setup?

Can only do your best with the advanced but could make a visible mark on the flywheel & case anywhere convenient or best make two marks one at 2 5 & one at 2.9btdc ,then strobe it & see if it in the ball park between the two or no more than 2.9 max. Mine was like yours rusty but worked good & sure helps with kickback.

Thanks RT good to hear that it worked out for you. Mine should be about the same as yours I hope. Just want to get it runnin for now.

And know the "advancer" is ONLY for starting.  Once bike is running at or just above idle speed, it's fully advanced.

'clock position for the puller and oil ran out of the hole. When I pulled the seal about a cup and a half or more of oil came out. It's just 2 stroke oil the transmission oil level stayed the same. When I started working on this bike the gas tank had a bunch of oil and the carb was full of it. I don't know why this would have had that much 2 stroke oil in it. It does not smell like gas at all, not even old gas. Anyway, I have the head off to do the timing, and I'm thinking maybe the best way is to pull the cylinder and suck it out with a hand pump. I really don't want to do that cause I don't have a ring compressor. I tried putting a hose in the carb port to suck it out, but could not really tell where the end of the hose was and did not get much oil. If anyone has a trick up their sleeve I would welcome the advice.
Dick

Not sure what happened to that last post, lost the first couple of sentences, but the main point is there.