No,That is all wrong.....Well not all, all.lol
You got it all figured out right, but;
If you try it your way, its almost impossible, okay just very difficult, to see 1 camtooth out of time.
You can do it that way,but you better be 100% sure that the sprockets are correctly timed.
Here's how I do it; I put the sprockets onto their respective snouts, and rotate the shafts so that the dots are about nose to nose. Then I put the sprockets into the chain dot to dot.I take that assy and lay it on a straight-edge, like a sheet of paper, such that the straight-edge passes through the exact center of the sprocket bores and through the dots. Thats 4 things that need to line up.From this point on, if the chain never slips a link on either sprocket, it doesnt matter where the keyways are, just so long as you are able to slide the sprockets onto them. The key is to pinch the chain-runs together during the trip from the bench to the engine, so that nothing slips.
From here, I install the cam-bolt, and rotate the crankshaft about 1 turn to put #1 piston at or near TDC/compression, and its ready for the dizzy drive.
Now, you need to research timing the cam to the camcard.
As for the oilpump drive; While you can plop it down into the hole any old way, and still make it run, it is however, best to install it in a certain position. And that position is such that, with the hex-drive fully bottomed in the oilpump, the slot (not the distributor shaft hole thingy),is pointing to the driver-side front intake bolt, with the #1 piston at tdc compression.Sometimes the hex doesnt line up with the oilpump, and the shaft wont drop fully down.If this happens to you, the crank will have to be turned a bit until it does drop in. Remember to put the crank back where you found it. ................So you got that right,too.
So it best to have the timing cover on and the ballancer installed first.I also wait until the topend is fully assembled, so I can tell that the #1 piston is obviously at TDC compression, because BOTH valves will be closed.In this way I dont wipe the special lube off the cam needlessly.
Now, why do we put the slot in this position? It is because in this position the dizzy will drop in, with the rotor aligned to the tower on the cap that was originally,from the factory, indicated to be number 1, and, with the vacuum advance can in a location where it ends up free of obstructions, so that we will be able to move the dizzy, to set the timing. If your dizzy doesnt have a Vcan, nor an indexed cap, it would be possible to slam it in any old way, and just put the no 1 wire into whatever tower the rotor ends up under. Cool.
As to the drilled bolt, what did Rusty say? Go look it up.