I copied this info from another site, it really explains the whole dwell thing, it is basically how I have always set the dwell except I have never removed the spark plugs, next time I think I will. You can adjust the points while turning the engine over with a screwdriver, just remember to remove the rotor or it can hit your screwdriver and break. After you put the system back together and start the car you will see the dwell will have changed. Now, start over and subtract or add the difference in running dwell and your dwell while turning over with the cap removed and set your points while turning the engine over with a screwdriver to the value determined. You may need to do this a couple of times to get it perfect while idling.
I installed the $30.00 Vellemann electronic ignition and my car has never ran better. I think that electronic system makes setting the dwell and your points condition less important in how your engine runs.
Here is the explanation I copied;
At ordinary engine operating speeds, the points open and close a couple of hundred times per second, the exact number depending on the number of cylinders and the engine RPM. The points need to be closed for a appreciable time in order to build up the maximum magnetic flux in the ignition coil core.
The period of points closure is specified by the ignition system designer and is typically expressed as degrees of distributor rotation. In a four cylinder engine, the angle between each ignition cam lobe is 90° and the period of points closure or "DWELL" is usually a bit over 45° of distributor rotation. In a six cylinder engine, the lobes are 60° apart and the dwell time is 30° to 35°.
The dwell is adjusted by setting the points gap to a specified distance at maximum opening. A narrower gap gives more dwell and a wider gap gives less. Taking it to extremes, excessive dwell means that the points close too soon after opening, cutting off the magnetic field collapse before it delivers all its energy. Too little dwell gives the magnetic flux insufficient time to build up to the maximum.
Both conditions give a weak spark which gets even weaker as the engine RPM rises and produces misfiring at normal operating speeds. The dwell, as well as spark plug gap, do have an effect on ignition timing. The later the points open, the later the spark comes and retards the timing. The earlier the points open the sooner the spark comes and advances the timing. That is why timing is the last thing to be set in a tune-up.
The way I set the dwell is this; remove the distributor cap and rotor, ground the coil wire and remove all the spark plugs from the engine. Set up your dwell meter and hook up a remote starter. Turn the key ON and crank the engine. Adjust the points to the desired setting and tighten the points. Crank it again to be sure the dwell angle is still correct.