That was my first impression. That the dist was not fully engauged. But the question is can the engine still run w/o the dist fully engauged? wouldn't there be a gap where it seats onto the block?
But I know one thing is for sure until it started running rough b 4 I took it in, the engine ran very strong. Hoping for the best expecting the worst.. unfortunatly

Try prayer as the first response rather than a last resort ...