I had a similar issue when I primed mine. I talked it over with a friend and he said that its normal to not have it gushing out the same way it would be if it was running. Really your just trying to make sure that oil is coming up through the push rods and building up oil pressure so that it doesnt have any "dry" time when it first starts up.
As for setting timing, I had a hell of a time of it. If you have the valve cover off, the manual states that the TDC can be measured when the #1 cylinder valves are both closed (easy to tell with cover off) however you can be on the exhaust stroke... I used this method and ended up being 180deg off, so we just rotated it around, put the dist. back in and we were good to go.
Good luck! Its a pretty nerve racking experience if its your first time like it was mine

Its pretty damn exciting when it fires up for the first time though... especially if you had open headers like i did