Distributor gear alignment question

It doesn't really matter how it is oriented. All that matters is that the rotor points to #1 when #1 is at TDC firing.
What I would suggest is: turn dampener till you are at 15 BTDC #1 compression. clock intergear so the rotor is pointing forward and slightly to the pass side. turn dist so the magnet is dead even with the tooth & the can is as we know on the pass side with room to be turned either way. plug the #1 plug wire into the cap terminal above the rotor which is facing forward and slightly to the pass side. this maintains the OE standardization (which helps prevent future mistakes) & lets the plug wires nestle the neatest with the shortest lengths possible. The rotor should be even with the cap terminal or a bit (1/2 its length) CW from it as rotor phasing shifts it CCW on a SB. regarding rotor phasing, cap terminals are .214" wide and rotor terminals are .244" wide and a 11 deg can for instance shifts the rotor (phasing) .270". keep the terminals sharp with a dremel and can fab a new rotor blade (drill out the rivet & make a new brass tang) so there is .015 clearance from rotor tip to cap terminal(s).