Yes, you are all set with the correct tools.
1) First, you are going to have to get the crank sprocket in place. Whatever it takes to get it down over the key.
2) Next, find a properly sized bolt and/or washers to be able to bolt your degree wheel to the nose of the crank. You will have to be able to tighten the bolt to lock the wheel in place, but for now, just leave the bolt loose to barely snug.
3) Find top dead center for your #1 piston from the front of the engine. There are many ways to do this. If you need a suggestion, just let us know and we'll give you some ways to do it easily.
4) With the crank at TDC for #1, take some piano wire or an old hanger wire, and find a way to bolt it to the front of the engine, then bend it and/or turn your degree wheel until the makeshift pointer lines up with the degree wheel for TDC, which should be 0 deg on the wheel. Tighten both the pointer bolt and degree wheel bolts so they will not slip.
5) Now, we are referring to your instructions above. The #1 intake is the second lifter from the front of the block. Find a way to set up your dial indicator so it reads the lift of that second (#1 intake) lifter. Let us know if you have any trouble finding a way to do that and we can help with ways that will work.
6) Loosely install the cam sprocket with no chain, just to give you a handle to work with. Turn the cam clockwise from the front of the engine until you reach the absolute maximum lift point as read on the dial indicator. The amount of the reading is unimportant, just so it is the maximum without bottoming out the indicator.
7) Gently remove the cam sprocket without changing the cam position.
8) Now, turn your crank clockwise from the front of the engine until the degree wheel goes from 0 deg TDC to 112 degrees past TDC in the clockwise direction.
9) Your timing is now set! But, we still have to install the chain. Run the chain around the cam sprocket, then, with the loose end dangling, install the chain over the degree wheel onto the crankshaft. You will have to remove either the pointer or the degree wheel for a minute to accomplish this.
10) Finally...the cam sprocket is manufactured in a way that the bolt holes can be aligned to give right on timing, or, jump the teeth in one direction and you get 1/2 tooth behind timing...jump the teeth in the other direction so the next bolt holes line up again, and it is 1/2 tooth advanced. This may seem complicated, but here is the easy explanation:
a) Hold the sprocket up to the cam and see if the bolts holes align. If so, you are golden. Install the bolts and you are done.
b) In all likelihood, the holes will be off a hair. Note the amount they are off, then jump the chain on the sprocket one at a time until the holes almost line up again. Continue to do this until you find the best alignment. Turn the crank as needed and install the bolts.
Here is the extra credit:
If the cam is installed slightly advanced to the crankshaft, then you move the torque band to a lower RPM, which is normally desirable for a street engine. Likewise, if you retard the cam in relation to the crankshaft, then torque is moved to a higher RPM, which is normally better for a car that is tracked. So...since we know the holes in the installation procedure above are never perfectly aligned, you can choose that to customize where your torque comes in. If you pick the sprocket teeth so that you have to turn the crank CCW to align them, then you advance the cam up to 1/2 tooth for better street torque...with the added advantage of allowing for chain stretch and sprocket wear. Use the holes so the crank has to be turned further clockwise to align the holes and you get your track torque band.
Of course, once you have installed your cam bolts, and before fully torquing them with the tab lock (if you are using tab locks), it is a great idea to put your degree wheel and pointer back in place and locate TDC again. Then slowly rotate your crank (and cam since they are now bolted together) clockwise until the dial indicator on your #1 intake lifter again shows the maximum lift. Now read your crankshaft degrees. 112 degrees is the recommended perfect setting. Less than 112 degrees is the amount of advance the cam has in relation to 112 degrees. For example:
Actual reading comes out at 105 degrees. Recommended is 112 deg. So 112 - 105 = 7 deg of advance. Up to 10 is fine. Torque band will be a bit lower RPM.
If your reading is more than 112 deg at the max lift, then you have a retarded cam by the difference from 112 deg, once again. Your Torque band will be at a slightly higher RPM.
That's all I can think of. If you compare my expanded instructions to Macy's sheet, you will see we are just doing what they recommend. Let us know if you run into any problems or have questions...Motors are my favorite part of a restoration!