The distributor is set correctly if you're on the compression stroke. I'd look for a friend with the same year model and see if you can swap distributors and ECUs - one at a time - and see what happens.

The only other thing I would suggest is to reinstall the distributor cap and take another picture. On this picture, tell us which wire goes to which cylinder. Just humor us on this so we can make certain the wires are installed correctly.

Frank

'89 [color:"white"]G-Raider[color:"white"] [color:"black"]Supercharged 3.0L, MegaSquirt 2, lockup A/T, 2.5" exhaust, 172k, Cibie H4s/Oscar SCs, Hella Micro DE fogs, Cobra CB, Superwinch hubs, LSD rear/Aussie Locker front, Bilsteins, Lifeline AGM, Rust-Oleum