If I want to advance it 4* then should I start with the bushing stamped with a 4 or a 2?

Edit...Update:

I was going to try to advance it tonight but I ran into a few more questions....sorry.

First, I noticed that the "dots" on the sprockets line up on TDC of the exhaust stroke (starting to come up on the exhaust lobe). At this point, the dot on the cam sprocket is pointing down, the dot on the crank sprocket is pointing up, and the dowel pin is to the right.

If I rotate the engine to TDC on the compression stroke (both lifters are down), the dot on the cam sprocket is facing up, the dot on the crank sprocket is facing up, and the dowel is to the left.

Is this a problem? Should the dots be lined up on the compression stroke, or does it not matter?

Also, I notice the dowel fits into a slot in the cam sprocket, not a hole. Is there a trick to drilling it out properly or do I have to get a different cam sprocket?