Keep an eye on the oil pressure too when you're cranking it for a while. If you haven't seen good pressure yet then perhaps you might want to remove the plugs, pack the oil pump and crank it over with no compression to get pressure up.

No, doesn't sound right. That way you are doing it means the cylinder has just completed it's exhaust stroke and the spark is trying to ignite the chamber when the inlet valve has'nt yet delivered the air fuel mix. You're 180 out (speaking from the way you're explaining it).

The intake valve opens and the piston on the downward stroke draws the fuel mix in, the valve then closes and the piston is doing it;s upward stroke(compression). When the piston it at the top (TDC) or near it you would want the spark to happen.