Hi Jamie,
To be confident of accuracy:
Step 1. Attach degree wheel to crankshaft
Step 2. Fit a piece of welding rod, wire coat hanger etc. and set it to roughly TDC on the disc.
Step 3. Fit a plate like the one in the photo below with a bolt in it that prevents the piston coming all the way up to TDC.
Step 4. turn the motor clockwise till the piston touches the bolt and stops. -note down the before/after TDC reading on your disc.
Step 5. turn the motor anti clockwise till the piston touches -note the before/after reading on your disc.
Step 6. You will have a difference between the readings off the disc -e.g. 20 degrees, if so, the true TDC is half the difference, 10 degrees forward or back of the two places where the piston stops. Just using a dial gauge on the piston isn't likely to give a true TDC as there is dwell either side of TDC.
Step 7. put your dial gauge on number 1 inlet valve, turn the motor over and note the highest lift reading on the dial gauge.
Step 8. Turn the motor over again, until 2 thou short of the highest reading; note the ATDC degrees off the disc.
Step 9. turn the motor a bit more until the guage goes past the maximum lift figure and reads 2 thou short; note the ATDC degrees off the disc.
Step 10. add the two ATDC degree figures together, then divide by 2 - the resulting figure is the true maximum lift reading. In the same way as there is dwell of the piston around TDC, there will be dwell around the maximum lift of the valves too.
This method might seem a bit of a rigmarole, but it does provide utterly repeatable results.
Edit: Once you have set the disc and pointer to the true TDC at step 6, remove the plate which stops the piston going to TDC; otherwise the next steps will be impossible.