The procedure for timing the mag is explained in the owners handbook. However, what it doesn't mention, is that the ignition on Postwar Douglases is fully advanced with the cable tight (most British bikes have slack wire advance). I have found that attaching a timing disc to the front of the crankshaft hampers access to the mag pinion for tightening the nut, so I resort to measuring the height of the piston before TDC. By my reckoning, 36 degrees is .276" before TDC. I usually time my bikes up with a couple more degrees advance, on the basis that it gives a bit more to play with - and I have never found any situation where full retard is needed. When you get the bike on the road, you will soon establish where the 'sweet spot' is with the advance/retard, and can then mark it with a thin strip of black tape on the lever.
Regards,
Eddie.