The cam would be correct if it runs good with it fixed as it is. The only reason I can think of that you would have to grind the tab and move the cap out of place is if the point plate inside the distributor is not mounted correctly.
This would make the points out of sync with the holes on the cap.
Sounds like someone has had the distributor apart and didn't put the plate back in right. I'm not sure how they could pull that off.
I have an old distributor in the shop. I'll have to look at it now to see if that plate can be installed wrong.
