Distributor vacuum advance hitting intake.......

I pretty much agree with the above. If #1 is on TDC, compression stroke, then when you drop the distributor in you can rotate the distributor body CCW so the reluctor is lined up with the pick-up(std Chrysler electronic) or points contacting but "about to be separated". That will be close to #1 firing position which will give you your #1 terminal. When all is said and done, it should look like the Motor Manual SB distributor diagram. While you don't absolutely have to have their #1 as your #1, pre-made spark plug wires are made to fit that arrangement, and you won't have some wires which are too short or way too long.
It doesn't matter if its in Comp. Or Exhaust stroke. The slot for the distributor in the gear is always inline to the front intake bolt. You can install the distributor after aligning the slot facing the correct way. It will be either on top dead center or 180 off. But when on top dead center going into firing stroke the distributor rotor will be in line with No. 1 with the vacuum advance at the correct position.