OT is German for TDC. There are two possible places where you will find this on the engine - either the front pulley and/or on the flywheel visible through a hole in the bell housing above the starter. On the flywheel, as shown in the pics, you will also see a "ball" pressed into the flywheel marked Z, which again is something German for "timing point". With a timing light, you want to see the ball on the flywheel through the hole at around 2200 rpm (I don't have the specs in front of me but that's close enough). On the front pulley, there may or may not be a Z mark, but you can paint one on.
To your question, by 1000 rpm, advance has already started, so if you set it on the OT, you do not have enough advance. You can use the OT to set what is known as static advance, which is done witht the engine off. Turning motor "by hand", the idea is to have # 1 fire as OT goes by. Harbor Freight sells a timing light that will allow you to set advance based on the OT mark. Do you have vacuum advance on your car? Someone else can advise on whether you set timing with that disconnected. I only know non-vacuum advance set-up.
If you're going to keep your 2002, might I suggest you ask Santa for a Haynes manual which shows how to do this and gives the correct specs for your model.