2:56 A strobe will show the marks are lined up regardless of whether the piston is actually in the right place, also regardless of where the stator plate is. So basically a strobe will just confirm that the marks line up but not much else. If they don't line up then you would need to make a new line on the stator 'guide' then use that new line. Also you should be able to observe that the timing retards as the revs rise, this is something that 2 strokes do and is the opposite of what a 4 stroke timing system does. You mentioned that the timing was 3mm BTDC, I presume that this is because you had a 1mm gap between your ruler and the nuts, the LC runs 2mm BTDC standard and less if its been tuned, 3mm is likely to cause problems!