A few comments about the flywheel lock tool and timing the car....
To get the main crank bolt loose, releasing the alternator and power steering pullies, you need serious torque. Getting to a wheel bearing may be more, something like 300ft/lbs, but not many things on the car are in so tight. 150ft/lbs is what you need to torque the bolt when reassambling, so you need at least that to remove the bolt. Last time I did this I had to brace myself against the wall of my garage to generate enough force to break it loose. This is why, I believe, that the shop manual calls for the flywheel lock, and why the lock is so "stout". This, and because you want to prevent it from moving without the timing belt also moving the cams. Pistons moving while the cams and valves are not moving has caused some feelings to be hurt. [img]style_emoticons/<#EMO_DIR#>/ohmy.gif[/img] Without the flywheel lock, you are pushing against the friction of the clutch disc on the flywheel.
As for the flywheel markings, and where you view them, it can be done from above, as has been mentioned. I'll try to get a picture tomorrow. The window is about the size of a postage stamp. From above, there is one visible mark that can be seen when it comes into view as you rotate the flywheel by hand cranking the car at the main crank bolt. When that line appears at the center of the view window, piston #1 is timed at TDC, or Top Dead Center. This flywheel position should match the position of the TDC marks on the exhaust cam gear and fixed mark behind it and can be seen by removing the distributor cap and rotor. It can also be done from below, as Ryan has said. I have done it this way when I was by myself, and cranked the engine by hand while checking the flywheel marks. You have to have the wrench on the bolt while looking through the hole in the bellhousing and pull that sucker slowly, while on your back. I think there are 3 marks when view from below, and TDC is the middle mark. (Ryan, if I have this wrong, and there are two instead of three marks, we'll connect sometime and I'll buy...heck, I'll buy either way!) When that mark is in the middle of the hole, the flywheel is in the correct position, and you pull yourself out from under the car and check the cam gear markings, which should be lined up, but not exactly perfect. Just a hair off. If the marking on the cam gear is 180 degrees off, at the opposite side, then you are at the wrong stroke. (I want to say exhaust stroke, but I need an expert to say this.) You then turn the flywheel until both marks line up.
What I have found is that the cam gear has a tendency to "settle", moving some teeth counterclockwise when the belt is removed and there is no tension keeping it in place. With the flywheel locked, all you need to to is get the new belt on with the cam gear marks lining up. I have always had to use a screwdriver and nudge the cam gear clockwise a bit to get it back to where it should be before slipping on the new belt.
We are all really good at error detection, so anyone reading this who sees a mistake, please get on it. Hope this helps!