To set the timing on a Toyota Paseo, first ensure the engine is at top dead center (TDC) on the compression stroke for cylinder one. Then, locate the timing mark on the crankshaft pulley and align it with the timing pointer on the engine. Adjust the distributor to achieve the correct timing specification, usually between 10-12 degrees BTDC, as indicated by the timing marks. Finally, tighten the distributor hold-down bolt and recheck the timing.
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