Point 1 - I have no idea how a Mk1 is set up but the basics are the same on all the old dungers.
changing the gap changes the dwell & the ignition timing. change of ignition timing changes the idle speed.
Set the dwell (preferably) or the gap (2nd choice) then set the timing, then the idle. If the idle is really high then it will have brought some timing on so you may have to set timing, set idle then repeat.
Don't forget to remove the coating off the points face & add a smidgin of grease for the points cam follower & if it's mechanical advance a squirt of oil down the dizzy shaft.
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I used to think I was anal-retentive until I started getting involved in car forums
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