Correct initial position for distributor

With the distributor rotated such that towers 1 and 8 were parallel to the front (or back) of the engine (or firewall) I started the engine. First time in about 2.5 months since I parked the car and swapped out the front stub.

The engine started and ran, after it came up to temperature and settled down to idle a timing gun said I was at 5 degreed BTDC.
The diagram in post #1 shows tower 1 positioned as being as far towards the front of the engine as possible. I figure that would put the timing at somewhere way after TDC, maybe 15 degrees or more. I then rotated the distributor slightly CCW to put 8 a little closer to the front than 1, and got 10 degrees BTDC.

I'll play with that a little more, I might have a more solid vacuum (18) at 5 vs 10. I'm running el-cheapo 87 octane Pioneer-brand gas, possibly with up to 10% ethanol. The car has had practically no driving for the past 25 years, so I'm wondering what is the best timing setup for the garbage gas we (I) have today.

I suspect I might have a weak spark, I had to manipulate the pickup of the inductive timing gun I was using to get a some-what consistent strobe going. Or maybe the points gap isin't set right.

I'm running Champ RN14YC, my plug wires are low resistance (500 ohms per foot). I do have a new set of N12YC (non-resistor) that I might try at some point.

My ballast resistor measures .82 ohms, could be anywhere from .74 to .87 ohms. It's an old coil, primary and secondary resistances are to spec.

Now that the engine runs and I'm re-filling the 727 with ATF+4 ($75 for 5 liter jug!) I have to see why my new copper/nickel trans cooler lines are leaking at the trans (but not the rad). I hate tube flaring - even when it looks great they still leak for me...