Timing Problem Mercury 60HP 1998

[cmyers_uk]

I have a problem that I wonder if somebody could explain.I have rebuilt a 1998 60Hp Mercury 3 Cylinder 2 stroke. When I have come to set the timing it seems to be out compared with the markers. Example if I set the timing using a stobe light and the timing marks to 2oATDC at tickover it will not run. If I manually adjust the timing by disconnecting the advance from the throttle and set the throttle to tickover and change the timing by hand until the engine is ticking over perfectly then the marks on the fly wheel are not lined up with the pointer. Infact they are not visible but the engine ticks over and revs fine. The flywheel has a key so it can only be put on in one way. The stator has an arrow pointing to 7 which I thought I had set correctly because I could see the holes that had been used before. Question : Is it the relationship between the stator and the flywheel that sets the timing of the spark?Question : Where is it likely that I have gone wrong any suggestions? Is it likely the stator is on incorrectly or could the flywheel be 180o out?Any help with how the timing of the spark works on a two stroke boat engine greatly received.RegardsChris

[cmyers_uk]

BUMP: Somebody must be able to explain this one please. Any help / url's to sites that explain the basics of timing a two stoke greatly appreciated.

[Rabbitdawghunter]

Have you got the timing light inductive pickup clipped onto #1 spark plug wire.

[cmyers_uk]

Yes the pickup is clipped onto the top cylinder spark plug.