Tony M,
"I would have lined up the ball on the flywheel with the distributor pointing at #1. Take the old distributor out and replace with the new one without moving the engine. Is this not correct?"
What you describe works for me every time.
"Ok, but what I never understood is that the distributor turns twice as well?"
The distributor turns one full revolution for two full revolutions of the crankshaft (the timing gear at the end of the camshaft takes care of this reduction).
Tim