Pull the hex out and secure it to the dizzy with a dot of rtv. Then drop the assembly in a sa one piece.

 

I tried to pull it out with a magnet, but it has the washer on the bottom which stops it from coming out. Because of that, I would have to drop the oil pan to do this, correct?

 

start with TDC (repeat that again with stuff blowing out). that will bring you NEAR TDC after compression.if you don't have a mark designating TDC then either it's gone (and you should replace it), or you were looking at the wrong spot. Even if you could get it sorted. How are you going to time it?
as for the position of the rotor when you drop it in. It doesn't have to be 1:00 o clock position. the important bit is that when you drop it in is that the rotor is pointing to the post on cap where #1 spark plug wire leads to.
So if you have the bottom of the engine where it should be:
- hold your distributor at the engine the way you want to place it in. most people have the vacuum advance pointing engine forward.
- put the cap on so that you can see where the post of #1 spark will be. remove the cap so you can make a little tip ex mark or remember a reference point onm the distributor so that you know where the rotor should point to when installed
- thenm seat the distributor in such a way that you end up with the rotor at your mark. If it's seated and you are a bit off, then turn the distributor a bit to correct it.

well that would be the first i'd try

the PITA with this is that here are so many experienced people who can set it for you in 10mins flat, but I can't really fly over.
I guess the next time I do it (I'll do a 429 BB soon (Gran torino)), I'll just make a video. buddy is doing heads at the moment, once he's done I'll change the distributor.

The best thing to do it you change distributors is always turn the engine to TDC _before_ you remove it and check where the rotor pointed to ... but it's too late now. You'll get it though

 

Thanks for the great reply!
Just to clarify, the 1:00 o'clock position is where the #1 is marked on the cap with the vacuum advance facing forward.

Had a friend (real mechanic) come by and do exactly this. Still didn't help. I just can't help but think it's something I've overlooked that's really stupid.

This would be awesome! I've actually learned more things by watching videos and looking at quality pics from experienced people than I ever would have thought possible.

Unfortunately, I wasn't the one who dismantled the engine, but the guy who did said he left it at TDC. hmm.