Changing the pip requires removal of the distributor and them pressing the drive gear off the distributor shaft. The shaft mounts the shutterwheel that triggers the pip sensor. Then once the gear is off the shaft, you can slide the shaft/shutterwheel assembly out and replace the sensor. You get to press the gear back on, pin it and reinstall the distributor. It may be helpful the heat the gear in the oven to make it easier to install.
Some guys find it easier to pay the $75 or so for a rebuilt distributor.
Here's some help for removing the distributor and reinstalling it...
Putting the distributor back in is fairly simple. Pull #1 sparkplug, put your finger in the sparkplug hole, crank the engine until you feel compression. Then line up the TDC mark on the balancer with the pointer on the engine block.
The distributor starts out with the #1 plug wire lined up at about 12:00 with you facing it. Align the rotor to about 11:00, since it will turn clockwise as it slides into place.
Align the distributor rotor up with the #1 position marked on the cap, slide the distributor down into the block, (you may have to wiggle the rotor slightly to get the gear to engage) and then note where the rotor is pointing. If it still lines up with #1 position on the cap, install the clamp and bolt. If not, pull it out and turn 1 tooth forwards or backwards and try again. Put the #1 spark plug back in and tighten it down, put the clamp on the distributor, but don't tighten it too much, as you will have to move the distributor to set the timing. Note that if it doesn't align perfectly with #1 position, you can turn the distributor until it does. The only problem is that if you are too far one way or the other, you can't turn the distributor enough to get the 10-14 degree optimum timing range.
At this point hook up all the wires, get out the timing light and start the engine. Set the timing where your car runs best. Don't forget to disconnect the SPOUT jumper connector when you set the timing, and plug it back in when you finish.