Distributor gear alignment question

It looks like it is pointed at the standard angle. Now, the distributor cap, rotor, and spark wire position have to be right....

Note that with the timing mark aligned to 0 on the crank damper, either #1 or #6 can be at TDC ready for firing. So your distributor cap and rotor arrangement will be one way or the other. You can tell if #1 is at TDC firing position by looking at the lifters; both #6 lifters will be slightly raised. If both #1 lifters will be slightly raised, then #6 is at TDC ready to fire.

If you are unsure which pair of lifters are slightly raised, rotate the engine through the 0 mark, and watch for which pair is moving: #1 or #6.