GW . . . I got your email. I left you a voice message a few minutes ago. Like 67Bugnut said . . . DON'T just time it by ear. Air-cooled VW engines are very sensitive to timing. If the timing is a little too late, the engine will run hotter and loose power. If the timing is a little too soon, it'll run great, make lots of power and burn holes in the tops of your pistons in a hurry!
If you have a stock crankshaft pulley, be aware that there are several different ones. What you think is your "top dead center" mark may not be top dead center.
It's common for all but the best engine builders to get the distributor drive shaft one tooth off when assembling the engine. The little cog at the bottom of the distributor will only go into the slot on the distributor drive shaft one way . . . if the drive shaft is wrong and you pull it out to "fix" it, you may end up with a chewed up brass gear that can only be fixed by disassembling the engine. If it's one tooth off, the best thing to do is leave that part alone and compensate by turning the distributor body a little to get the timing set correctly. It's not really a big deal which way the drive shaft is in . . . as long as you end up with the spark happening at the right time.
You need to set the timing with a light under full advance (vacuum line hooked up if it's got a vacuum advance, and engine reved up to 2000 or so rpms). Under full advance, the timing mark shoud be 32 degrees before top dead center. Don't worry about where it is at idle. You only have one setting that you can control. If it's going to be off, you want it to be off when it's idling, not when it's going down the road wide opened!