I think I will agree with All Dodge....even there are screws at the dizzy cap it can be rotated from the Base with the distributor housing and if we consider that the rotor is steady since it is coupled with oil pump, so the hvs can be phased to any point. The point is to be sync with the crank and cam and the only precise method for each motor is the method with the Led light mentioned above. Just think that mercruiser, before publish the latest service bulletin , had another bulletin which said that if misfires occurred then you can rotate the distributor housing 1-2 degrees cclockwise so to equal with the wear of timing chain,gears etc. But the latest is the precise method for phasing and be sure that the rotor is sync with cam and crank.
Anyway, since my problem with surging solved I would agree to start a new topic related with the rotor phasing for the motors with hvs and dizzy cap as well since this is one of the weak points for Un normal performance of the engine.