Brian,

You are correct...at least a tooth off. Draw a picture of the rotation of the part that move and the part that doesn't move...it will become clear which way you have to reposition the distributor drive gear.

Pull the distributor slightly out and click, click it back one or two teeth. I think if you pull it out JUST far enough to clear the cam gear, it will still be engaged in the oil pump, and as you rotate it backward, the pump will follow.

Stuart