The instructions for my comp cams degree kit specifically called for using a solid lifter for the degreeing process, regardless of what kind of lifters the cam was eventually going to run with. The fellow on the tech line told me that the solid lifter insured accuracy, whereas a hydraulic "could" compress a bit and throw everything off. Even if it didn't compress, using a solid lifter won't hurt anything. It's not like the engine is actually running or anything.
Just lining up the dots will work, but for getting everything out of the cam, degreeing is the way to go. Just take your time, and it's not a bad thing to invest in roller tip rockers, and a degreed balancer & pointer from a place like fluidampr. Homemade timing tape sucks.
It takes some effort, but it's worth it. I degreed the cam in my small block (331) 69 camaro, just to get everything I could out of it. when I'm rolling on the freeway, I'm turning almost 4 grand at 65 MPh.. at that speed, If I need to pass someone, I just bury the pedal, and the revs come up like right now, and I am on my way.. shocked my friend who tried to race me on the highway in his 383 camaro. Anyway, degreeing is worth it, you'll get more power in a given rpm band than the guy who doesn't take the time to do it.
Tom
Tom
Find the circumfence of your balancer. For example a 8" balancer is 25.13272" (2 x pi(3.14159 x r(radius)) Radius is just half the diameter or 4" for a 8" balancer. Divide the circumfrence by 360 to give you a value per degree (.0698131). Lay out a 25.13272" 
strip of masking tape and start making a timing tape. You only have to mark the important numbers off your cam card such as intake centerline, open and closing events usually at .050 lift (you will need a indicator regardless) and a vernier caliper makes the layout a lot easier as it measures on a decimal scale. For example to mark where 17 degrees is on the tape multiply .0698131 x 17 = 1.18682" It takes some time but it works and is very accurate but most importantly CHEAP 
