The wires do not look they are placed correctly in the pic. Does the car start/run OK? Can't see how it would with the wires like that. Does not 'really' matter exactly where the #1 terminal is as long as the firing order is correct. It's odd for it to be that far over. If it was wired like that when you got it, the the P.O. messed it up and was trying to make it work by retarding the timing like 80 degrees.
Take the valve cover and distributor cap off. Bring the motor to TDC on the compression stroke and look to see where the distributor rotor is pointing. Then check the mark on the balancer to see where it's at. Pretty easy to verify this stuff.
If the rotor is pointing somewhere other than the #1 cylinder, then you have some deeper checking to do. If it's 180 off, that's an easy fix. If it was timed wrong when it was built, that's another story but if it made *** horsepower at the wheels prior to you getting it, then clearly it's just a matter of finding TDC and putting the wires in the right spot.