You've got it right on
, thats exactly how the 86 valves are timed. exact same method on 250's and 500's
Sometimes they will feel a little snug, especially if theres any carbon left on any of the valves or the inside of the cylinder.
1-install both valves into cylinder
2-turn each valve so the dot/index mark faces towards the front of the cylinder
3-lift both valves slightly and insert operating rod into the cylinder
4-align dot with respective groove in the operating rod
5- install the round aluminum valve guides
6- install o rings onto exhaust valves and slide them down until they contact the valve guides
7-install the right hand governor plug and washer , tighten securely 11 ft lbs.
Look into the exhaust port and at the valves, if you've got it right it you will know just by looking at the position of the valve and seeing how the gases would flow through it will be obvious.
If its wrong it should look obvious as well, but just play around with them a few times and you'll get it.