I do it cold using brute force and a strong pliers, but it will be easiest with the engine hot and running.
I'd back the idle ball stud completely off. and work on the advance, then once that is set to your liking, do the cold idle. There may be a small kink in the cable where the adjuster block used to sit...if so, that is a good starting point(but may be different with the new CSD). Also using your picture from before as a reference probably hows where it should sit when cold.
Yes, the arm should rest on the stop when hot(at or before the lowest point your gauge can hit in normal driving), that is probably more important than any of the other factors.
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