what is the best way to set up a timing belt and timing on a peugeot 306 please

l have only done this on the ''Phase 1'' 306. the last year for that model was 1996, l believe.
TIMING BELT REPLACEMENT:
It is the same as all the other Peugeot TU engines. Basically you:
1. Disconnect battery negative cable so the car will not start accidently.
2. Remove the plastic covers that protect the timing belt. After removing the top cover, turn the crankshaft with a spanner by hand & insert a 10mm bolt in the camshaft sprocket timing hole located in the cylinder head. This PREVENTS camshaft from moving even a little bit. Notice timing mark is position in metal sprocket.
2.5.. With the camshaft hole correctly positioned, now insert a 6mm bolt into the timing hole behind the flywheel, edge of motor block. Rotate crankshaft by hand SLIGHTLY 1/16 inch if needed to insert bolt. This prevents crankshaft from moving.
3. the lower cover is the hardest. Not much room for ur hands. And remove auxiliary drivebelt for alternator. (2nd belt if has power steering) Remove the crankshaft pulley, 3 bolts, noting which way round the pulley is fitted. Now there is one more bolt for the cover. Remove lower plastic cover.
4. See the timing belt tensioner? Loosen the tensioner pulley nut. Highly recommended to replace tensioner at the same time. You do not want to return in 6 months for a noisy pulley replacement. Turn tensioner with a square bar, clockwise, retighten nut. (to free the belt tension).
5. After all plastic covers r off, the water pump is starring u in the face. Consider replacing that too. It is about 40 quid? & u do not want to return for that job soonafter.
6. Now it is time for lunch. DONT ALLOW any pulleys or gears to move!!! Notice exactly where timing marks r located! (If cam or crankshaft moves ONE tooth, = problems starting engine. moves 4 teeth = damage upon starting)
7. Timing belt on. New?Tensioner pulley back on. New? water pump in? New Belt (see direction arrows on belt!)should be tight enough so that it only twists 90 degrees between ur thumb & forefinger. Remove blocking bolts. Hand crank the belt CLOCKWISE through 4 revolutions & check that ur timing marks , & holes, on the two pulleys r as they were & should be. Rotate 2 full turns again & check again!
8. Replace all covers. Replace auxiliary belt(s). Reconnect battery.

trevor is right they have two holes one on the camshaft pulley u can insert a drill bit if u havent nothing else the its one to lock the crank shaft that u insert into the hole in the bell housing near to the engine block and it locks the fly wheel