If your engine starts that would indicate that the dist drive gear is properly engaging the cam gear. Have you measured the length of the shaft from the bottom of the dist gear to the end to see if it's long enough to engage the oil pump? Any possibility that the oil pump or gauge is bad? Maybe insert dist, turn over a little by hand then pull dist to see if oil pump slot has moved. That would verify whether the oil pump is being engaged or not.
Last edited by Forty9; 07/01/2017 10:27 PM. Reason: more info