The inductive timing light clips are free to move on the wire. If it works on #2 and not on #1, I suspect that you need a new set of spark plug wires.
Try switching #1 and #2 wires on your engine (or install a spare wire you have laying around from the last set on #1) and and see if the light suddenly works on the new #1 plug wire. If it does, your plug wire is faulty. If it still doesn't work, I'd suspect a problem with the cap and/or rotor.
