Derek, the cam lock and pump lock are ONLY used for installing the timing belt. They are NOT used during the fine injection pump timing procedure.
It seems you may not fully understand the dial indicator's function and reading. There are two hands that move on that dial indicator, the big hand and the small hand like a clock and what they represent is similar. The very small hand near the center of the dial indicator reads millimeters. The large hand is divided into hundredths of millimeters (1/100mm). The entire face of the dial indicator can be rotated and rotating that face so that the large hand points to zero is called zeroing the gauge. The red markings can be ignored (not to confuse, but they are just there to measure 'in reverse').
Step one, make sure the cold start lever is not pulled out.
With the indicator out of the injection pump, push the little feeler in and watch the two hands. Notice that for each entire revolution of the big hand, the small hand moves up one increment. With it at rest, loosen the little screw on the outer rim of the gauge face and rotate the gauge face so that the hand is pointing at 0. Hopefully at rest the little hand is also pointing at 0 (some of them point a little before zero, which is also fine). Next you want to insert the indicator into the adapter and into the injection pump so that it has a 2.5mm pre-load. What that means is that you insert it so that the hands start moving and you keep pushing it in until the *little hand* reads 2.5mm - halfway between the 2 and the 3 on the little face (the actual preload amount is not critical - any measurement between 2.5mm and 6mm is fine, but it is good to understand the process). For a 2.5mm preload, that also means that the big hand will rotate 2 complete revolutions and then another half of a revolution.
OK, preload set at 2.5 mm... now rotate the crankshaft counterclockwise. As you rotate the engine CCW, the big hand will rotate with the numbers going *down*. Watch the gauge for the point where the needle stops moving and when it does stop, you should stop rotating CCW. Take a quick look at the small hand. Make sure it has not rotated all the way back to 0. If it has, then there is some chance that the dial indicator reached the limit of it's range of motion before the part in the pump stopped moving. If it did go all the way to 0, then you want to add a little more pre-load by pushing the indicator into the adapter a little further and then rotate the engine CCW a little more to make sure the pump part you are measuring has stopped moving.
Ok, you're now sure that you are at the 'bottom of the pump plunger stroke'. Next, zero the gauge face. Loosen the little screw on the side of the indicator and rotate the gauge face so that the large hand is pointing to zero. So, at this point, you are 30 degrees or so before TDC, the big hand is at 0 and the little hand is between 0 and 1 (or between 1 and 2, but regardless, take note of it's current reading).
You are now ready to rotate the crank to TDC. The big hand should start rotating up. Stop the crank when you get to TDC. Look at the the big hand and the little hand. What are they reading? For correct timing on a stock non-turbo engine, the big hand should be at 90-95 and the little hand should have moved up one increment (if it was between 0 and 1, it should now it should be between 1 and 2). If the reading on the big hand is just a little below 90 and the little hand has moved almost one increment, then the pump needs to be advanced (rotated so the top of the pump moves toward the injectors) just a little bit. If the reading on the big hand is very small and the little hand has barely moved, then you need to advance it a lot. If the reading on the big hand is very small but the reading on the little hand has moved up a full increment, then you need to retard the pump a little by rotating the top of the pump away from the injectors.
Make sense?
