Rhys is right about the timing/wires issue. Wherever the rotor points
when #1 is at TDC of the compression stroke is where #1 wire goes. This
happens all the time. If it really bugs you that way you can pull the
distributor/oil pump drive gear/shaft, turn it exactly 180° from where the
gear teeth finally disengaged, and put it back in, but if the wires reach
OK where it works, I'd leave it there.

The headgasket problem may be telling you that you need to mill the head
a bit, just to get it good and flat. Also be sure you torque it right,
both in the right sequence and to the right torque each time (29, 58 and
65 foot pounds). Also be sure that the bolt holes and bolts are good and
clean. I put a little grease on the threads and under the heads of mine
to make sure that what I am reading as torque is going to engaging the
threads rather than overcoming excessive friction. That way the torque
mostly goes to clamping the head to the block and not just twisting the
shank of the bolt.
--
George Downs, Bartlesville, Oklahoma, Central US