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If the timing is correct, the distributor is not off.
Keep in mind that distributor positioning is "flexible" - there is no timing mark on the cam that you have to match to the distributor drive. As long as the distributor body is in the correct orientation to permit it to be rotated for adjustment and you've turned the shaft (and rotor) to point at what you want to call the #1 plug wire while #1 cylinder is at TDC, nothing else matters. You can even "rotate" the firing order around the cap by choosing a different wire as #1. (Something you might do to tidy up the plug wire routing, for example.)
The only time "off a tooth" comes into play is when you pull the distributor on a working engine and then put it back. What will happen is that the timing will be way off and you won't be able to turn the distributor far enough to bring the engine back into time.
Sounds like your problem lies elsewhere. Did you degree the cam?
Keep in mind that distributor positioning is "flexible" - there is no timing mark on the cam that you have to match to the distributor drive. As long as the distributor body is in the correct orientation to permit it to be rotated for adjustment and you've turned the shaft (and rotor) to point at what you want to call the #1 plug wire while #1 cylinder is at TDC, nothing else matters. You can even "rotate" the firing order around the cap by choosing a different wire as #1. (Something you might do to tidy up the plug wire routing, for example.)
The only time "off a tooth" comes into play is when you pull the distributor on a working engine and then put it back. What will happen is that the timing will be way off and you won't be able to turn the distributor far enough to bring the engine back into time.
Sounds like your problem lies elsewhere. Did you degree the cam?