Correct initial position for distributor

Well this is what I'm seeing, looks to be what you guys are talking about:

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Crank is at exactly TDC. Points look to be open here, max opening maybe.

I've written down some numbers from the distributor internal weights, I'd like to know what sort of curve this distributor has, I'll post a new thread on it.
The POINTS (or the breakerless pickup) IS WHAT FIRES and not the rotor. That is why I suggest NOT putting the marks on TDC. Instead, put the the balancer on the marks where you want timing. NOW with what you have there, rotate the dist CW (retarded) which will close the points. Now rotate slowly CCW (advanced) until the points just open. You can do that with a test light (ignition on) or with an ohmeter (ignition off)

You can also leave it as is and (thanks, Crackedback) check the timing with a light "on the starter"