Timing Issue

It sounds as if the distributor was installed one tooth off or possibly the timing chain is severly stretched. Bring the #1 CYL to TDC with wrench (turning engine clockwise). Reverse rotation of engine (wrench on balancer bolt) and see how many degrees the balancer will turn before dist. rotor begins to move. This (amount of movement noted on balancer timing graduations) will give you an indication of how stretched the chain is.

If OK (or corrected) I would then reposition the dist. to be able to make full timing adjustments.