Yes, the rotor has to be near the pin for the cylinder #1, but more important is that the points are just opening. Clean the points with 400 grit went and dry paper. Fold the paper over so that you clean both points at the same time. Clean any grit out with a piece of thin cardboard. Adjust the points to 0.020 inch with the cam at a position where the points are open the greatest amount. Turn the engine over by hand so that the timing pin drops into the detent in the cam gear. Push the advance lever all the way up, fully retarded. Use a trouble light or multi meter in the ohm position, with the ignition off, and see if the points are closed when you turn the rotor by hand clockwise and open if you turn it counter clockwise. If not adjust the cam position until this is the case. Put the cardboard back in the points and with the ignition on measure the voltage at the moving point. It should be the same as the battery. Turn the ignition off. Take the cardboard out and turn the engine over until the points are closed. Turn the ignition back on. Now measure the voltage again at the moving point. It should be very close to zero. If you do not measure the voltages as described you have an open circuit, a short, or the points are not conducting. Find out why and fix the problem. This should take no more than half an hour or an hour at the most if you have to fix something. Don't leave the ignition on for more than about 30 seconds with the points closed.