For comparison, here's the 1978 KZ750 twin ignition shown on kawasaki.com, and the parts list (with no "stator" mentioned).
If recalling correctly, the KZ750 twin crankshaft turns "backward" counter-clockwise (like the old BSA 650 twins) when the engine is running. So the points backing plate would be rotated counter-clockwise to retard the timing (lobe reaches point heel later) and clockwise to advance the timing (lobe reaches point heel sooner).
If similar to timing procedure with Z1 and KZ900 points, would begin with backing plate in middle position of the 3 elongated holes. Then set the gap (only the gap at this stage -- not the timing).
With correct gap, and after assuring the advancer unit is properly functioning and not sticking in the advance position, would next try static timing (engine not running) by aligning F mark with case mark at moment points open, and do this by adjusting the points (not the backing plate). Am thinking the points have a separate independent adjustment via one elongated hole and one fixed screw whereby the timing may be advanced or retarded. This is not the separate gap adjustment which has presumedly already been set as above suggested.
When hand turning the crankshaft, do NOT use the smaller bolt inside end of the crankshaft. Do USE the larger 17mm "fake" nut, and turn it counter-clockwise to attain the lobe position against the points heel where the points just begin to open. The larger "fake" nut is there specifically for this purpose to avoid stripping the smaller bolt threads or threads inside the crankcase.
Reposition the backing plate as a last resort.
The static timing should be close enough to get the engine running for next using a strobe-type timing light to finalize the perfect setting and watch the advancer unit in action as rpm is varied.
Most of the above is predicated on experience with Z1 and KZ900 points ignition. Will now patiently await well-deserved crucifixion by a twin guru or so
.
Good Luck!
[Click on image for larger view -- hopefully
]
REF NUMBER PART NUMBER DESCRIPTION QUANTITY US CA CN REMARKS
1 312B0600 NUT 6MM 2 KZ750-B1/B2, KZ750-B3/B4
2 461F0600 WASHER SPRING 6MM 4 KZ750-B1/B2
3 21164-005 SWITCH ASSY,MAGNETIC 1
4 21064-002 DAMPER MAG SWITCH SHK 1
5 21061-021 RECTIFIER 1 KZ750-B1/B2
6 461F0600 WASHER SPRING 6MM 3 KZ750-B1/B2
7 311B0600 NUT 6MM 1 KZ750-B1/B2
8 21066-027 REGULATOR 1 KZ750-B1/B2
9 411B0600 WASHER PLAIN 6MM 2 KZ750-B1/B2
10 112G0612 BOLT-UPSET,6X12 2 KZ750-B1/B2, KZ750-B3/B4
11 21121-1174 COIL-IGNITION 1
12 92027-276 COLLAR,IGNITION COIL 2 KZ750-B1/B2, KZ750-B3/B4
13 92003-170 BOLT, IGNITION COIL 2
14 21132-005 GROMMET,SPARK PLG CAP 2
15 21130-1007 CAP-SPARK PLUG,RTFM20 2
16 21131-004 GROMMET-PLUG CAP,A 2
17 92001-1397 BOLT-8X63 1
18 92022-244 WASHER,SPARK ADVANCER 1
19 21008-1013 BREAKER ASSY,CONTACT 1 KZ750-B1/B2, KZ750-B3/B4
20 220B0512 SCREW PAN HEAD 5X12 3
21 461F0500 WASHER SPRING 5MM 3
22 411B0500 WASHER PLAIN 5MM 3
23 220B0406 SCREW PAN HEAD 4X6 2
24 461F0400 WASHER SPRING 4MM 2
25 21008-025 BREAKER,CONTACT 1 KZ750-B1/B2, KZ750-B3/B4
26 21019-005 FELT OIL 1
27 21013-034 CONDENSER 1 KZ750-B1/B2, KZ750-B3/B4
28 26001-1040 WIRING HARNESS,BRAKE 1 KZ750-B1/B2, KZ750-B3/B4
29 21148-1004 ADVANCER,AUTO TIMING 1 KZ750-B1/B2, KZ750-B3/B4
30 21160-005 CAP,SPARK PLUG 2 X CANADA KZ750-B3/B4
8-1 21066-029 REGULATOR 1 KZ750-B3/B4