Possibly detonation...help

That can only be true if the crankshaft and camshaft are also correct with the piston at the top on the compression stroke with both valves closed. Since it came from the factory with the rotor pointing at about 1'oclock under these conditions the OP is best advised to maintain the same orientation.
:doh:
Assuming the distributor has NEVER been out of the engine...
Do you really believe that?
 
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Sorry for all the confusion guys. The bottom picture is MY engine, and the #1 plug wire is the one with the yellow line through it, nearest the manifold. I have since determined that this is NOT my problem.

My plug wires are in the correct orientation, and my rotor is pointed at the #1 post when the crank is at TDC on the compression stroke.

Side note!

I put 5 gallons of premium fuel (93 octane) from BP in the car yesterday, and it ran like a champ. Occasionally I would get one "tick" or maybe two, but the audible detonation was gone. Put 5 gallons of standard grade (87 octane), in it today, and the detonation is back with a vengeance!

I also ran it at 4* timing with 87 octane and STILL HAD DETONATION even at that low of timing!

Thanks for bearing with me so far!
 
I just had a eureka moment. Im staring at the engine of my car trying to figure out how Im gonna find this vacuum leak I KNOW it has. I dont want to pay a shop to use a $1200 machine to do it, so I do what any mechanic who smokes does. Sit down and light up a cigarette to think...Then it hit me like a ton of bricks. I AM A SMOKE MACHINE! Bwahahahahaha... I have a bad EGR valve! FINALLY!!!

DIY smoke machine 101-

Step 1. Light cigarette
Step 2. Hot box yourself and blow the smoke into the brake booster line with some force.
Step 3. Find Vacuum leak!
Step 4. Do happy dance!