Ok... I tried reading all this thread but got tired after reading a bit so excuse me if I go over something that has already been gone over.
1. left pickup is for 1/4 and right is for 2/3
2. take off rotor and LOOK AT IT! It has a small dimple the size of a pencil eraser. READ THE DIRECTIONS... at 1/4 TDC, I believe dimple is oriented to the left at about 9 oclock... READ THE DIRECTIONS as my memory is bad. If you put the rotor on backwards, the wires will be backwards.
3. trace left pickup wire regardless of colors, etc, to the LEFT COIL as you sit on the bike. This should be a black wire... It should be the 1/4 coil with the 1/4 plug wires attached. Trace the right pickup coil wire to the right coil and 2/3 plugs.
If you do these things, the Dyna S will be hooked up correctly. They have ONLINE .pdf file instructions and READ the bit about installing the rotor!!!
Once you have it hooked up right, use a timing light to set the timing. The static thing is more or less a waste of time. I can explain how to use a timing light, if needed. If you have problems and think the thing is defective, contact the seller or Dynaonline.com tech support.