Aces (I think this is you my second gen friend...........

)............. you don't have to get the dial indicator in the exact center of the crank (actually should be slightly offset). As long as it's firmly held to the crank and the pin locates in the locating id hole of the bellhousing you're good. Turn the engine until the indicator is straight up and zero the gauge. Then turn it 90 degrees and watch and record how much run out (in thousandths) there is, + or -. From there you can determine which way it needs to shift.
For example if it's 0 up top but +6 at the bottom it needs to be moved down 3 degrees (need to add the two readings and divide by two to get the difference. If it's off to one side and down it's the same thing, but will be moved both down and over to whichever side it needs to be. After adjustments to the dowels (if required, many don't) always re-check you readings to verify it's right.
One thing......... McLeod has some nice offset dowels that are adjustable and easier to use, others also have them. Lakewoods not so much. I've also found McLeods bellhousing much more accurate than Lakewood.
Here's a link that will help:
http://www.superchevy.com/technical/...ing/index.html