Rookie Questions about Timing

I've got a '71 CB350 K3 that won't start. I suspect it's the timing so I'm trying to get that set correctly. This is my first time to adjust the timing, and I have some rookie questions.

1. What is the purpose of the felt underneath the main cam? Should it be making contact with the cam? Mine's not. Is that a big problem?

2. My Clymer manual says that I should apply a light coat of breaker cam lubricant to the entire points area when I'm done. However, I can't find that stuff anywhere. (Apparently most of the folks shopping at AutoZone these days don't drive vehicles with breaker points. ) Should I use some other lubricant? WD-40 perhaps?

3. And this is the big question... Instead of using a test light, I'm trying to use my fancy-pants multimeter to know exactly when the points open. This has been an interesting experience and has already provided me with a much greater insight into how the ignition circuit works. (Most importantly: it works exactly opposite of how I assumed it worked)

The Ohm meter function of the multimeter has a buzzer function... as long as the circuit is complete, it will make a beeping sound. I adjusted the points plate so that the beeping stopped (i.e. the breaker points opened) right when the "LF" mark passed the index mark.

To double-check my handy work, I turned on the ignition and switched the multimeter over to read the voltage. This, however, yielded slightly different results. The voltage level starts rising a little bit before the "LF" mark arrives at the index mark.

Is that normal? Should I use the Ohm meter results or the voltage meter results?

As always, I appreciate any insight you guys can provide to a rookie!