which timing mark on the balancer to use
Are you saying there are two different marks on the balancer itself? Should only be one. If there are two, sounds like the outer ring had slipped, and someone added another mark. The outer ring is pressed onto the mounting ring, with a rubber sleeve between them, the timing mark lined up (90 degrees from keyway), as it's put together. You should consider replacing the balancer, since if it's loose, or getting that way, it can come apart!
Solid or hydraulic tappets? Assuming since your rockers are adjustable...solid?
A couple good ways to adjust the valves. Simple way, bring #1 piston to top, compression stroke. Both valves will be fully closed...adjust both rockers, then, in rotation of the motor, by hand, simply follow the firing order, bringing the next piston up top, adjust valves, and so on.
There's another (that some prefer on solids), but takes a chart to know which valves to set. Basicly, #1 TDC compression stroke...but, then two completely different valves, one intake, one exhaust are set. Chart is needed to know which two valves. And on from there. Many racers do it, since the two valves being set are on the bottom side of those cam lobes base circle.