Pick the distributor up and spin the shaft so that it moves 1 tooth over and then place the distributor down and recheck the timing.
There really is no such thing as being "1 tooth off". If you didn't have anything in the way, you could stab the distributor anywhere you want and just spin the housing to set 10 degrees.
Since the intake and water neck get in the way, you just need to stab it on a tooth where you have room to adjust. When it hits the neck or something, moving the shaft 1 tooth over usually gives you enough clearance.
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.
The HO firing order is 1-3-7-2-6-5-4-8.
Non HO firing order is 1-5-4-2-6-3-7-8