Mule, Yes your procedure is correct. Pull the number one spark plug, turn the motor over until you have compression on the number one cylinder, use what ever terminal on the dist cap that the rotor is pointing to as number one, install plug wires from that point.

Now it sounds like you have done that, and you have a problem. So lets "ASSUME" that you are off a smidgen, move all of your wires back or Counter Clockwise one terminal on the dist cap and try and retart. If you are off like is mentioned just a tooth or so on the distributer this just "May" solve the problem. Now if its worse, then advance all of your terminals or go "Clock Wise" one terminal from the initial setting, in this case that would be two terminals as you had already moved them counter one. Got it??

May or may not solve the problem but it is at least doing something and will probably solve this.

Roland