Hmmm... I don't know if yours has a octane selector. If so, make sure that it is set to zero before adjusting the timing.
There are multiple procedure for resetting the distributor. I do this way:
1) Find TDC on #1 plug... I remove the #1 plug, then I use a long straw and watch it come up as I bump the engine over or turn it with a wrench on crank.
2) Once you have TDC on #1, then reset the distributor where the rotor is pointing to #1 on the cap. It's a little tricky since the groves (at the bottom of the distributor) are angled. So you have to play with it... set it in a little before as it drops it will turn the rotor a little.
This is the way I've done it. It's not the only way, but it works for me. Anyone else have a easier / better idea?
Good Luck!