What cap terminal is #1? or does it matter...just pick a #1, point the rotor to it (keeping the engine at TDC compression stroke), and put the #1 plug wire to it? Need a starting point to run the rest of the wires.

 

Depending how you drop the distributor onto the oil pump drive, #1 can be anywhere to want on the cap. It depends where the rotor is pointed when the engine is at TDC. The TDC mark will either be #1 TDC on the compression stroke or #6 TDC on the compression stroke. When looking at the cap while standing at the front of the engine, typically #1 is at the 5 o'clock position. Rotation is clockwise.

 

Oh OK weird, but I can see how that works. Ford I believe uses a hex drive on the oil pump. This is the first Chevy I had to drop (LT1 was the other, but no distributor...plus Bret did the oil stuff).

So basically while @ TDC on the compression stroke, wherever I drop the distributor down onto, wherever the rotor points to is where # 1 will be at, and the rest follow suit; and I can change where # 1 is by taking my priming tool and turning the pump to make it land in a different spot?

 

Dave, in a word, yes. You can clock the distributor to any location that is the most convenient for you. However most folks are used to the #1 post as being closest in-line with the SBC's oil pressure port on the rear of the block.
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Put the engine at TDC on the compression stroke of the cylinder number one.

Engage the distributor splines such that when it drops into position, the rotor points at the oil pressure sending unit port on the rear of the block. You'll have to fiddle with the oil pump slot to get it right.

The post nearest the oil sending unit will now be for #1 cylinder, just like everyone else's.

 

http://www.geocities.com/meanracing/...formation.html

Bottom pict. shows the standard location for #1.
Remember if you already have taylored wires (precut), and you move the #1 location your wires may not reach all the terminals any more.