In order to time the cam to the crankshaft
You're going to have to install the head and cambox. Nothing is really timed to anything until you can install the timing belt.
The video can probably do a better job of explaining it than me, but the basic idea is to find TDC (sounds like you've done that), install the degree wheel on the crank, and make a pointer (I use welding rod or coat hanger). The pointer can be installed anywhere, just find a bolt to cinch it down under, and make a loop in the rod that the bolt fits in. Make it pretty big so you have a range of area you can point to. Bend it so that it points to the TDC mark on the degree wheel (with the engine set at TDC on the cylinder you are going to time the cam off of, of course).
Then install the head and timing belt. Since you have an adjustable cam pulley, it may not have the original timing marks on it. You may have to use the stock pulley for reference and use a Sharpie to draw a mark on the adjustable pulley. Install the belt to this mark. This will get you within a few degrees. The shop manual can help you through this process if need be.
Install the dial indicator on the top of the valve shim you are going to time off of. It can be any cylinder, but it MUST be the cylinder that you set to TDC. Typically you would use cylinder 1 (closest to the crank snout). Set the dial indicator to zero. If I recall correctly, when the timing belt is first installed, cylinder 1 is on the compression stroke, which means neither valve will be open (both the intake and exhaust lobes on cylinder 1 will be "off the nose" of the cam). If that's not the case, then slowly rotate the engine over by manually turning the crank clockwise at the crank nut until you are on the compression stroke.
Finally, slowly rotate the engine over until you observe movement on the dial indicator. When the indicator reads the specified amount (.050 inches in this case), the degree wheel should read very close to 40 or 80 (depending if you are timing off the intake or the exhaust). Use the adjustability of the cam pulley to fine-tune it so that the measurement (.050 inches) coincides exactly with the 40 or 80 on the degree wheel.
At this point the cam is installed "straight up" (is not advanced or retarded).
You can leave it there, or play with it back and forth. But in any event, you should check for adequate piston to valve clearance wherever you end up setting it to. This is much easier if you have a light "valve checking spring" to use. If not, then the old-fashioned approach of claying the piston will work too, but it's a lot more work.
I'm doing this from memory, so I hope I got this right... somebody else chime in if I mis-stated something!
Pete
