Cusser
+1y
You want the engine to be under laod when you break it in, so don't run it too long while on jackstands or in neutral.
The sparking at the coil is typically from dirt (being conductive) or bad rubber boots, so you need a more-permanent fix. This stuff is more-readily seen at night/dark, or by misting the area with moisture from a mist bottle. This would be entirely unrelated to the old starter not spinning the engine every time.
As to the timing, paint the mark on the pulley white/yellow, and I like to also paint the 6 degree mark on the timing color white. Since mine has AC, I let the AC belt hang loose as I then get a much better view of the timing marks. Make sure your idle speed is OK (800-900 rpm or so), because too much rpm means too much vacuum.