Looking at the mag with the points cover off, to retard the timing the cam ring has to be moved in the same direction that the points are rotating, i.e the ramp of the cam ring is moving away from the contact breaker heel as it's trying to catch up with it.
RE twins have mags that rotate clockwise at the drive end, so counter-clockwise at the points end as you have seen, therefore to retard your K2F the cam ring has to rotate counter-clockwise a few degrees. On RE singles (and many other British twins), the points rotate in the opposite direction.
Yes, the choke is down (handlebar lever wound shut) for on.
A.