This thread brings back memories. I bought a used 68 Bultaco Matador in 1970 for $390.00 (it was completely stock). One of the best bikes I've ever owned. Rode it for 7 years, sold it to my brother. He rode for several years then sold it to a friend. If I remember correctly 68 was the first year of the straingt finned head and five speed gearbox.
I put on a Mikuni carb and that made it much easier to start. Changed the top triple clamp, handlebars, shocks, air filter, fenders, headlight, tail light and a bunch of other bits. Typical stuff that readers of "Dirt Bike" did to make their bike "better".
The points ignition was tricky to set up. A dial indicator on the piston was used to scribe a reference mark on the cases and flywheel. The points gap was then done through the flywheel slots. Then the timing was checked for when the points opened. If it was off, then the flywheel got pulled in order to rotate the stator plate. Then it was reinstall and recheck the point gap and timing. Repeat as needed until correct.
OP did you get the secondary muffler in the spares box? These were almost always removed and I bet it would be really tough to find one. Sure made for a quiet bike.