You're on the right track. Dwell is the period the points are closed though. As the rubbing block wears dwell increases over the life of the points. Increasing dwell also retards the ignition point. So you set the dwell or breaker gap first, then the ignition timing. If you want to be accurate, set the dwell to 58 degrees but otherwise 60 is fine. Set at .016 inch and then see if the dwell is 60 as that will tell you if you are using the feeler gauge correctly. At this point however the cam and shaft wear in the distributor will usually defeat accuracy.
The two piece points are best done on the bench. It's also important to get the contact patch centred between the two sides. That makes for longer point life.
Use breaker point grease or the stuff they provide. Use about 1/4 of what they give you. Dielectric silicone grease works too. No petroleum grease.
Oil the upper felt under the rotor, and the cap on the outside of the distributor for the upper bearing.
Rubbing block on the lobe of any cam, bit of friction on the moving side of the points, adjust to a light drag on the gauge, remove the gauge, tighten not too much, recheck with the gauge and see if it's tighter or looser. Trial and error. That's all you can do.