Ok, some updates on my situation:
I pulled the prop hub off the other day, and noticed that the tapered collet that goes between the hub and the crank, has striations on it, meaning it has moved between the hub and the crankshaft. The collet also had an 'indentation' on it where the locating pin has been forced against it. I cleaned up the collet and reinstalled everything, making sure everything was lined up. then went about the timing again, and got TDC. I then managed to get the timing set up as 28Deg BTDC when the magnet was moving AWAY from the hall sensor in running direction. To do this, I had to ADVANCE the hall sensor as much as possible. It is at it stops, and this is the SAME way, I would time any engine...DLE's etc...and any other single cyl engine. Now, and this is the confusing part, have a look at this diagram on CH-Ignitions website.
In this picture you can CLEARLY see the difference. He is saying that the ignition needs to be when the BEEP/LED occurs when the magnet first APPROACHES the hall sensor.....This is not possible with my engine, as the hall sensor cannot retard that much. I measured what the angle would be if this were possible, and it would be about 40 Deg BEFORE TDC if following normal timing practice.
Now I know that this is not the Saito Ignition, this drawing is in reference to the CH-Ignitions/RCXcel set up, and I dont know how the inner workings of the two differ....but they sell the timing kit as a universal for ignitions, and the pic above, is diferent to the procedure they have of single cyl engines....which is the same way that I described above.
I am confused now....