The text from Swedishbricks is:
"Turn the engine to #1 TDC (timing marks in line on crank pulley to pointer on timing belt cover), then install the flywheel so that the two rivet-like pins that are on flywheel inboard of ring gear about 1+ inch are on the exhaust side of block roughly at 2 o'clock and 3:30 while the engine is at TDC. You might find that at this position you will see a faintly stamped arrow pointing at the crank sensor. Not all flywheels had this arrow for the first couple of years, so you might not find it on yours. One bolt hole in either direction puts them way out of this orientation. The spot on edge of flywheel where the holed surface is interrupted will be mostly lined up with starter when it is correct. "

I think you have to assume that you're looking at the flywheel end of the engine here, ie looking forward. That way the exhaust side would be on the right, and "2:00 and 3:30" would be roughly over by the exhaust manifold.
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Rob Bareiss, New London CT ::: '86 244DL- 215K, 87 244DL- 230K, 88 744GLE- 198K, 91 244 180K