The way that distributor position could affect oiling was only with the 55 and 56 265 engines.The groove for oil in the lower part of the dist housing extended only part way around then ended with a blanked space that stopped the groove.57 and later the groove was extended all way around the dist so it passed oil no matter where it was located-rotation wise.
The correct positioning for the 55 and 56 was with the vacuum advance unit pointing over the outer front corner of the right valve cover.If deviated from this a lot oil supply would be blocked to the right bank lifters and rockers.Also these 2 year engines required a short(part way around) groove in the rear cam journal.Solid lifter cams had a shallow groove and hyd had one about 5 or 6 times deeper.For a while the low HP engines were supplied with solid lifters from the factory.
