340 Chugging instead of Reving

Where the rotor points to, matters not a bit; but at the appropriate time, it better be under a tower who's wire goes to the appropriate cylinder. We use number One cylinder (the driver's side frontmost cylinder), because the balancer is already marked for it; but we could just as easily use any cylinder, just by finding and marking it's TDC on the balancer.
During operation, the flyweight mechanism, moves the rotor into rotation. Because of that, the rotor has to start on one side of a tower, and sweep past it, yet not get very far from it, else the spark will jump to a cylinder that is under less cylinder pressure. The coil is lazy like that, always looking for an easier spark-path.
But again, where the rotor actually points to, whether the left front intake bolt or the right or the passenger side apron or anywhere else , matters NOT one tiny bit, except that; custom wires fit best when you use the position that the factory chose..... plus it makes it easier for the newbe mechanic to diagnose problems.

Your engine's power timing usually falls in the range of 36* plus/minus 2*.
Therefore if your centrifical system is bringing in 20*, you would set your base-Idle timing to 16 +/-2*. So then in a perfect world, your rotor would start at 10* before the chosen tower, and sweep to 10* after it. So then, you can see this with the engine off, by setting your balancer to 16* +/-2*, and manually jockeying the rotor between it's limits. However, at this same time, the reluctor better be in the firing position. If it is not; something has to be changed. Either the reluctor has to be rephased, or the rotor tip has to be. The rotor is usually easier.

To aid in diagnosing the issue with the ignition box, I locked the distributor at 32*. Now that the box issue is resolved and if i understand you clearly, I will unlock the distributor, reinstall the springs and set the mechanical to be all in at 34*.
After timing the engine ~12* I can remove the dist cap, rotate to TDC and inspect the position of the rotor. I expect to see the rotor close to the #1 tower and be able to swing the rotor by hand to see it pass evenly across the tower, indicating the advance swing. In conjunction the reluctor post should be on the pickup at this point. I may need a day or two before I can get enough time in my shop, so bare with me on the results.