I think (key word being think) that you do need to divide by two.
The light triggers using the clamp around the plug wire, correct? Think if you were on a car engine, the plug only fires every other revolution of the crank (well, on most old cars anyway). On your R, you are firing on every revolution. The light is thinking that you are having two revs of the crank for every firing, so the RPMs it is reading out is double.
I think you have to do the same for some four strokes as well, depending on where the CDI gets triggered. On machines like the 350X, the CDI trigger is on the flywheel, which means it gets triggered on every revolution of the crank. What this gives you is just an extra spark at the top of the exhaust stroke, which doesn't do anything (for the engine) but it would give a double reading on a timing light tach that doesn't have a setting for 2 stroke.
As for the timing advance, the R and X CDI box takes care of that. It does advance the timing, but it does this elecronically, as opposed to some of the older machines (like a 200 Big Red) which has a CDI trigger run off the cam with a mechanical advance mechanism built into it.
- Frank
1984 200ES Big Red
1985 350X (x2)
1986 350X
1986 250SX
1984 Auto-X
1984 ATC70
1985 ATC70