Originally Posted by The Hulk
How do I know that the Distributor is in the right position?
Is there a special tool to change that with...
Is it the timing or could it be something else?
The distributor is in the "nearly correct" position when the rotor points at the number one spark plug terminal and the number one cylinder is at TDC on the compression stroke. It is in the "correct" position once timed to your engine's requirements. Correct is likely to be something different for nearly every engine, especially older engines.
There is a special tool to change that with...it is a big wrench with a socket on the end of it that matches your balancer bolt. Turning the engine in a clockwise direction will enable you to find TDC on the compression stroke. Remove the #1 spark plug, put a finger over the hole and rotate the engine until it "blows" past your finger. You should be able to see your timing mark on the dampener come somewhere near about 6-10* advanced on the timing pointer. At that point, if you pull your distributor cap off, you should see the rotor pointing to one spark plug pole more predominantly than any other. That would be the #1 plug. Wire all of the remaining wires from that point, ensuring that you traverse the cap anti-clockwise.