The movement you got is the ~10 degree "fine adjustment". The distributor
has to come out, and yes, the crankshaft must be rotated to TDC compression for #1 cylinder first.
Label the wires on the passenger side of the distributor cap so they get put back on correctly. Pull the wires out of the cap on the passenger side. Move the cap out of your way toward the driver side. On the distributor housing, there is a "6" stamped on it:
Remove the key from the ignition, using a ratchet and socket in the crankshaft vibration dampener, slowly rotate the crankshaft clockwise until the distributor rotor starts to approach the "6", (you'll need an assistant for this). If you pass the "6", do not turn the crankshaft counter clockwise, rotate the crank 2 more times. On the vibration dampener there are two "slots", slowly line them up turning the crankshaft clockwise, paying close attention to the top marks, (the other mark should be in about the 4 o'clock position):
When the dampener mark lines up with the mark on the timing cover, #1 cylinder is at TDC of its compression stroke. DO NOT MOVE THE CRANKSHAFT FROM THIS POINT.
Note the position of the rotor in relationship to the "6". It should now be about 20 degrees away from the "6" in one direction or the other. Remove the distributor hold down bolt. Unplug the camshaft position sensor. Pull the distributor straight up, (the shaft will rotate slightly as you pull it up). Rotate the distributor shaft slightly in the direction that it needs to go to line up with the "6". In other words, if the rotor was left of the "6"
(in red above), rotate slightly to the right or vice versa. Install the distributor and make sure the rotor points to the "6", (or very close to it) when the distributor housing is fully seated against the intake manifold. It MIGHT be necessary to rotate the oil pump drive shaft, in the same direction, the same amount you rotated the distributor to line it up with the "6". Put her back together, clear the DTC's, and start her up. The P1345 should be gone and no SES light.