Please confirm that you understand that #1 piston comes to Top Dead Center in two instances. Once on compression stroke and once on exhaust stroke. You have got to confirm it is TDC on Compression stroke before installing DIStributor. You can do this by feeling for compression with finger in spark plug hole, or by watching the valves with valve cover removed. Sorry to be repeating this, but it looks to me like you have distributor 180 degrees out.