That sounds good, most handheld power drills run around 3000 RPM max which when you consider the 1/2 ratio from cam to crank you are "simulating" the engine running at 6000 RPM. It's also a bit helpful to see how the oil pressure holds at lower speeds so you know it'll be good when the engine is brought back down to idle.
If you mean setting timing before the engine is started... you basically rotate the engine to say 10* before TDC on the compression stroke going off the timing marks, then drop in the distributor and set it up so the rotor is lined up with the #1 cylinder on the cap contacts. Make a mark with a sharpie or whatever on the distributor base lined up with the #1 cylinder contact with the cap attached, this makes it easy to see exactly where the rotor needs to point when the cap is taken off since you can't see the rotor when the cap is on #-o
