Success! I followed all of the good tips I received in this forum and the old rust bucket fired right up! Thank you all for your help!
For future
newbies like myself, I'm going to summarize how I seated the distributor and set the timing. Feel free to correct me as will likely post something wrong, in the wrong order, or miss something completely (disclaimer).
First, I think I actually had the distributor seated several times but I thought it wasn't seated because the new style distributor clamp is much shorter than the original. Therefore, there will be a small gap between the bottom of the distributor and the clamp (see pics for comparison). I will essentially repeat all that you've told me in these forums...
My steps (this is when you haven't marked where the rotor and distributor should be set):
1. Buy a $18 remote starter. It's worth every penny.
https://www.amazon.com/gp/product/B000EVU8MK/ref=oh_aui_detailpage_o03_s00?ie=UTF8&psc=1
2. Remote spark plug from #1 cylinder and remove the coil wire from the distributor cap (so it can't start).
3. Cover the #1 cylinder with your finger and use the remote starter to find TDC (top dead center). Your finger will be pushed off on the compression stroke. At this point, the BB should be close to the BB. Careful not to go past it. Move the fan to make small adjustments until you align the market with the BB (this is 7 degrees BTDC - before top dead center). I used white paint to mark the timing marker and the BB so it was easier to read, especially when timing.
4. Remote the distributor and find the slot in the oil pump at the bottom. Use a long screwdriver to align it around 11 o'clock as you're looking down on the distributor towards the block.
5. Bolt the distributor clamp to block. Add oil to the distributor shaft, gear, oil ring, etc.
6. Align the distributor shaft so that the bottom blade of the distributor is slightly to the right of the oil pump slot at bottom. Push the distributor in and it will rotate into the slot.
7. If the distributor doesn't seat all the way, press down slightly on the distributor shaft (remove the cap and rotor) and give the remote starter a small bump. You should feel the distributor drop down into the oil pump slot, if it wasn't already seated.
8. I went back to step #3 so that the timing marker was pointing at the BB again. I then rotated the distributor until the points began to open and then I verified that the rotor is pointing to the #1 spark plug wire on the distributor cap (essentially pointing to the #4 cylinder).
9. After I had the timing marker at the BB, the distributor seated, the points opening slightly, and the rotor pointing to the #1 spark plug wire on the distributor cap (pointing towards #4 cylinder), I replaced the spark plug, coil wire, and put the distr cap back on. I slightly tighted the distr clamp but left it loose enough that I could still adjust it during timing.
10. Pull the trigger on the remote starter (with the key in the ignition on) and pray she starts! Once started, use a timing light to ensure that the BB is still at the timing marker at idle. If the marks are not aligned, make small rotations of the distributor until the BB and marker are aligned.
11. Once the marker and BB are aligned via a timing light, tighten down the distributor clamp and go have a beer. Good luck!