What is the best way of doing this? Engine is in car, dizzy has ben out and im unsure of timing, car wont start and im thinking timing's wrong?

1.Rotate engine by hand until No1 is at TDC.
2. Take cap off dizzy, drop dizzy in with contact pointed to No1 lead. Be aware that when you drop the dizzy in it will move due to the shape of the gears so then pull out and re adjust until it is pointed at no 1
3.Tighten dizzy, start car and adjust with timing light.
Brett

Hmm did that and car still wont start. Is turning over and occasionally tries to fire...?

What you should do is get it in approximately the position as Brett suggests but....
Turn on the ignition.
Put a screwdriver or even another spark plug in the end of number 1 plug lead.
Loosen the dizzy and turn it slightly away from number one(anticlockwise) then turn it back in the direction as if the engine is running(clockwise) and watch the spark fire.
Obviously you want the crank at least 10 degrees BTDC when you do this.
The reason for all this is that with such high spark energy the spark will actually have already jumped the gap from the rotor to the post when you set it up statically(ie no ignition power) so the result will be a much advanced spark in actuality.
BTW I assume you have it on the right stroke for firing?