timing gear alignment.

You can throw the distributor in the ditch. That engine in the FSM is STILL 180* out. The distributor really hasn't anything to do with this. I don't know why your so fixed on it. The CAMSHAFT is what's important here. The cylinders only see the valves closed for compression ONCE in 4 cycles. With #1 at TDC the valves are closed. With it timed up like the FSM says, the valves on #6 are closed, not #1. So, if you time the distributor to #1 you will be WRONG. Yes, all you have to do is turn the crank ONE revolution from the FSM picture and you're on #1 TDC. I've only seen a scant FEW manuals make that point. The bottom line? If that FSM says the engine is timed to #1 TDC with those sprockets as they are in the picture, it is WRONG. Plain and simple.