Backfiring out exhaust
I understand some of what you said but would it still backfire if rotor is pointing at #1 plug and firing order is right? It ran fine before I moved the distributer gear but now it doesn't. I was thinking maybe distributor is bad?
Silly boy; you said it yourself;
" it ran fine until I moved the distributor gear".
Therefore, there was nothing wrong with the distributor, before you moved it. What could have possibly killed it while it lay on the bench?
I'll say it again, you can chase that gear all around the clock, and the only thing that will change is to which tower the spark will go. Rewire the cap and badaboom, back in action.
Now, here's another secret;
if the reluctor "fell off", notice it has two internal "keyways". It therefore fits two ways. If you reinstall it wrong, you're gonna have a heck of a bad experience, trying to restart the engine. Look closely. Adjacent to the keyways are arrows. One fires to the left and the other to the right. Choose the one that when at 12 o'clock, points in the direction of the distributor shaft rotation. These are there to help put the rotor in the right place, relative to the tower, when the pick-up fires.