Correct initial position for distributor

make sure you have some swing for the vacuum can to clear stuff regarding setting timing. Don't have it all the way forward close to the intake plenum area.

Where the rotor is currently pointing is fine. Load the wires based on where the rotor is pointing, not the diagram.

Rotor position doesn't matter 1 bit as long as the wires are in the cap in synch with TDC/firing order. You could point the rotor to the rear bumper for #1 tdc as long as #1 was in the rear of the cap.