At TDC should the slot for the distributor gear run parallel with the crank and rotor point to #1 cylinder?

Ya but you don't HAVE to

The only reason that there are prescribed ways of installing distro's is:

so the assembly line folks can do it all over again

so the plug wires and vacuum advance "sit" right

so a tuneup mechanic "sees" what he expects to see.

Only rigs this isn't true is stuff like V6's where every other pair of cylinders fires closer together

Thanks for the replys.