Timing these engines is straightforward, though reading Bentley
doesn't make it sound simple!

Here's a paraphrased posting of Dennis Haynes' which explains
it most clearly:

Ignition Timing Procedure 1986+ Vanagon 2.1L Digifant

1.      Warm engine to normal operating temp.
2.      Shut off engine.
3.      Connect timing light.
4.      Connect tachometer. (optional)
5.      Restart engine and run up to more than 2000 RPM. (~2500 works well)
6.      Disconnect BLUE CONNECTOR from Temp sensor II. (Don't catch your tie in the belts!)
7.      Maintain engine RPMs ~2500 and point timing light at timing mark. (5 BTDC)
8.      If timing mark aligns with split line between crankcase halves timing is correct.
9. If not loosen distributor and make adjustment. Don't forget to retighten the distributor if you
had to loosen it.

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