Looking at the pic of the dist. without the rotor, that looks like things are lined up - dist. body in correct position, points have just opened, notch on rotor has gone past the notch on the dist body, #1 wire looks like it would sit over the rotor. But if at that point, #1 cyl is 180 deg away from firing position (ie valves are open), then I believe you have to turn motor over one revolution to get to the TDC firing position, and then pull out dist enough to turn shaft, rotate rotor 180 deg, then push back in so it lines up again. You need to compensate for the gears meshing, but the idea is to recreate the photo. That should work.