Alright.......you need to get the dist. lined up properly.
Go ahead and REMOVE THE DISTRIBUTOR COMPLETELY......also remove the dist. cap from the dist. as well.
If you have a compression tester that you can screw into the #1 spark plug hole, that would be great......if not, use a finger to plug the opening for the #1 plug........you might want to go ahead and remove all the plugs so the engine is easier to spin over by way of a socket and ratchet on the 21mm crankshaft bolt up front.
Spin the engine in a clockwise direction when viewed from the front. As your spinning the engine, you will get to a point where as your timing mark is approaching the "T" (for TDC) on the timing scale, the compression that is building in the #1 cylinder is going to try and push your finger out of the #1 spark plug hole..... (it will actually start "pushing your finger when it's around 90 degrees away from the "T")......or if you have a compression gauge in the #1 plug hole, it will cause the needle to rise.
As this happens, try and stop turning the engine when the timing mark on the HB is even with the "T" on the timing scale.......if you pass it up a little, you can reverse the ratchet and turn the engine counter-clockwise to back up to the "T" mark.
YOU ARE NOW AT TOP DEAD CENTER (TDC) on the COMPRESSION STROKE for the #1 cylinder.......and that is where you NEED TO BE, in order to install the dist. correctly!
Now, look at the dist. and line up the 2 marks on the distributor.......one mark (it's actually a "raised hump") is on the aluminum housing down next to the dist. gear, and the other on is ON the upper portion of the dist. gear (it looks like someone tried to drill a hole there!).........as in this picture!
Now, without turning the rotor (or dist. gear) hold the dist. by it's aluminum housing at the exact position it will be in when it is finally installed (electrical plug at around 10:30 clock position, and the 2 adjustment slots centered over the threaded holes that the hold-down bolts screw into.)
Insert the dist. into it's hole and the rotor will move as the gears are meshing and it should point to 9:00 o-clock when the dist. is fully seated against the head. If your not right, pull it out and try it again until you have the dist. housing slots centered over the hold-down bolt holes and the rotor is pointing to 9:00 o-clock........make sure you re-align the marks on the lower part of the dist. BEFORE you try and insert it every time!
Almost done!
Now, you need to install your dist. cap (it will only go on one way) and insert the #1 plug wire on the wire tower that is at 9:00 o-clock (looking at it from the driver's front fender).......#3 plug wire at 12:00 o-clock......#4 plug wire at 3:00 o-clock......#2 plug wire at 6:00 o-clock.
Plug in your coil wire (both ends!) and plug the dist. electrical connector back up, and then give it a whirl and see what happens!