Stupid Distributor Questions

I just brought the engine to TDC on #1, and the tip of the rotor is PAST the #1 tower on the cap. I can simply rotate the distributor body until it lines up with the #1 tower, but the position of the points changes the firing time if this is done. Based on what I can see here, the gear would need to be turned a tooth counterclockwise in order for the rotor tip and the #1 tower to be in line. Having said that, the way it is right now would make the timing LATE, which would also cause the car to stumble, pop through the carb, as well as make the tips of the plugs be white, or colorless.
If this is all that is wrong with this POS..........

George